central bank of yemen
TRANSCRIPT
CENTRAL BANK OF YEMEN
ANNUAL REPORT
2005
GENERAL DEPARTMENT OF RESEARCH AND STATISTICS http://www.centralbank.gov.ye
E-mail:[email protected]
The Speaker – House of Representatives The Prime Minister Dear Sirs, Pursuant to Article (57) of Central Bank of Yemen Law, I am pleased to submit the Balance Sheet for the year ending on 31st December 2005, Profit and Loss Account, as certified by the external auditors, and Report of the Board of Directors on the monetary, credit and economic situation in the country. Thank you very much. Ahmed A. Rehman Al-Samawi Governor Chairman of Board of Directors
Board of Directors For the year ending on 31st December 2005
Mr. Ahmed A. Rehman Al-Samawi: Governor and Chairman of the Board of Directors.
Mr. Mohamed Awad Bin Humam: Deputy Governor and Vice Chairman of the Board of Directors.
Mr. Ahmed Ubaid Al-Fadhli - Vice Minister of Finance Mr. Ali Ali Al-Nouseif Mr. Abdul Gabbar Hayel Saeed Mr. Abdul Rahman Mohamed Al-Kuhalli Mr. Munassar Saleh Mohamed
Member Member Member Member Member
CONTENTS Chapter One World and Domestic Economic Developments 1 Chapter Two Production 21 Chapter Three Government Finance 41 Chapter Four Money and Credit 61 Chapter Five Balance of Payments 87 Balance Sheet 111 Statistical Appendices 119 Appendix 1 Money Supply 120 Appendix 2 Changes in Money Supply 121 Appendix 3 Balance Sheet of the Central Bank of Yemen 122 Appendix 4 Balance Sheet of Commercial Banks 123 Appendix 5 Deposits of Commercial Banks 125 Appendix 6 Interest Rates 126 Appendix 7 Currency Issued by Denominations 127 Appendix 8 Structure of Banking System 128 Appendix 9 Balance of Payments 130 Appendix 10 Central Government Finance 132 Appendix 11 National Accounts 134 Appendix 12 Agricultural Production 138 Appendix 13 Industrial Production 141 Appendix 14 Consumer Price Indices 144 Appendix 15 (a) Market Exchange Rate
(b) Exchange Rate of Major Foreign Currencies
145 146
Appendix 16 Trade Balance 148 Appendix 17 (a) Exports by sections of H.S.
(b) Exports by Country 149 154
Appendix 18 (a) Imports by sections of H.S. (b) Imports by Country
159 164
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CHAPTER ONE
WORLD ECONOMIC SITUATION
AND DOMESTIC ECONOMIC DEVELOPMENTS
(A) WORLD ECONOMIC DEVELOPMENTS
Introduction
In 2005 the world economy witnessed a continuation of the sharp
fluctuations in exchange rates nominal as well as real, an
escalation in energy costs and the prices of commodities and
metals and a heightening of the risks of deterioration in the major
economies.
World oil prices surged in 2005 and global imbalances have been
widening for several years as a result of strong world demand and
fears of future oil supplies. The picture was also compounded by
natural disasters the Tsunami floods in the Indian Ocean in
December 2004 and the Hurricane Katrina in the Gulf of Mexico
in September 2005.
The world economy grew by 4.8% in 2005, which is half a
percentage point less than what was achieved in 2004.
International short term interest rates continued to rise but
international financial market conditions were not affected and in
fact risk premiums were exceptionally narrower. The growth of
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world trade was in the double digit range, while global inflation
increased in response to the movements in international oil
prices, but its effects were limited.
World growth in 2005 was mainly driven by industrial countries
led by the United States, which acted as the major catalyst and
engine of growth, in addition to China, India and Russia, where
investment ratios increased at higher rates than was the case in
other industrial countries.
Advanced Economies
In general, economic performance was low in most industrial and
developing countries. Most advanced economies experienced a
slowdown in growth, which remained weak in Europe. Japan’s
performance was stronger, while that of the United States was the
strongest.
The slowdown in the economies of the industrial countries was
caused by weak domestic final demand and a fall in private
consumption, reflecting the continuation of the slowdown
experienced by most of these countries since 2001 (1990 in the
case of Japan). The slowdown was also caused by weak foreign
demand, owing to the increase in the prices of commodities and
some major currencies. Furthermore, widening budget deficits,
huge debts, the rise of international oil prices to record levels and
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the adoption of most of these countries, with the exception of
Japan, restrictive monetary policies helped in curbing economic
growth. Growth in advanced countries fell from 3.3% in 2004 to
2.7% in 2005. Unemployment remained high at 6%, but inflation
rates were low in the region of 2.3%
The United States
GDP growth in the United States fell from 4.2% in 2004 to 3.5%
in 2005, owing to a fall in private consumption and domestic
final demand, resulting from an increase in commodity and
energy prices. Unemployment fell from 5.5% in 2004 to 5.1% in
2005, while inflation rose to 3.4% in 2005 after it was 2.7% in
the previous year.
Restrictive monetary policy and a sluggish real estate market also
played a role in weakening domestic demand. The increase in the
inter bank lending rates restricted private investment and led to a
reduction in sales. By raising short term interest rates the Fed
aims to fight inflation and keep it under control.
The budget deficit in the United States fell from 4.7% of GDP in
2004 to 4.1% in 2005, but is expected to be higher in 2006 as a
result of reconstruction in the coastal areas and military
operations in Iraq and Afghanistan. The national debt rose
slightly from 62.5% of GDP in 2004 to 62.9% in 2005. The fall
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in foreign demand also led to a reduction in the contribution of
net exports to economic growth in 2005 in general.
The current account deficit of the United States deteriorated from
5.7% of GDP in 2004 to 6.4% in 2005, mainly as a result of an in
increase in corporate and household imports from abroad. The
rising U.S. current account deficit was reflected in a rise in the
current account surpluses of other countries, particularly oil
exporters, China and Japan. The increase in the U.S. dollar
exchange rate against the other major currencies may have also
helped in the deterioration of the U.S. current account deficit in
2005 .
The Euro Area
The Euro Zone economy has been suffering from low economic
growth during the last five years. In 2005, Euro Zone GDP
expanded by only 1.3% compared to 2.1% in 2004.
The weak economic growth in the Euro Area in 2005 is attributed
to sluggish consumption both corporate and household, low
investor confidence and weak external demand for the exports of
the area. It is also attributed to the fragility of final domestic
demand and the sharp increase in international oil prices.
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High unemployment has persisted in the Euro Zone for a number
of years even though it fell a little from 8.9% in 2004 to 8.5% in
2005. Inflation has been subdued but it rose a notch from 2.1%
in 2004 to 2.2% in 2005.
The large budget deficits and high levels of indebtedness
afflicting most Euro Zone member countries are in violation of
the economic convergence criteria as set out in the Maastricht
Treaty.
In Italy in 2005, for example, the national debt exceeded GDP
while it exceeded two-thirds of GDP in both Germany and
France. These three countries are the largest economies in the
Euro Area. In recent years the budget deficit in the major
member states exceeded the 3% of GDP level allowed by the
Maastricht Treaty. This also goes for the year 2005, with the
exception of France where the deficit fell below the required
ceiling. For the Euro Zone as a whole the budget deficit was
2.3% of GDP in 2005, while the national debt was 71.2% of
GDP.
Japan
GDP expanded by 2.7% in 2005 which was 0.4 percentage points
higher than the growth rate of 2004. These rates are much higher
than what had been achieved in the past. Final domestic demand
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has been increasingly the driving force behind the recent
economic expansion. Unemployment fell and corporate profits
flourished. The deflationary pressures of the past have been
overcome by strong and rising private consumption.
Exports in Japan witnessed rapid growth as a result of strong
demand from the United States and China in addition to a weaker
Yen. All these developments have helped Japan overcome eight
consecutive years of chronic deflation, which resulted in a sharp
fall in per capita income in Japan relative to the United States in
the nineties, despite the close convergence between the two
countries in the seventies and eighties.
The budget deficit shrank to 5.8% of GDP in 2005 but is still
higher than what has been achieved in other major industrial
countries. Gross national debt, at 176% of GDP, was also the
highest among leading economies. On the other hand,
unemployment fell from 4.7% in 2004 to 4.4% in 2005.
Developing Countries
Economic growth in developing countries fell from 7.6% in 2004
to 7.2% in 2005, which is still relatively strong. High rates of
growth were achieved in 2005 in countries where there was an
increase in oil production.
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Asian Emerging Markets
In the emerging markets in Asia economic growth fell slightly
from 8.8% in 2004 to 8.6% in 2005, while in the Asian-Four
countries GDP growth retreated from 5.8% in 2004 to 5.2% in
2005. The exports of electronics and medicines were the driving
force behind economic growth in the Asian emerging markets,
while in India and China strong domestic demand and increasing
current account surpluses were the main factors behind the
expansion in GDP.
Improvements in the area of IT boosted activity in the remaining
regions. The Asian economies’ strong demand for raw materials
stimulated world growth, as most of these economies registered
higher growth rates than the advanced countries. Top performers
in 2005 were China, India and Russia, the growth rates of which
were 9.9%, 8.3% and 6.7% respectively.
The Middle East
Economic growth in the Middle Eastern countries as a group
improved from 5.4% in 2004 to 5.9% in 2005, owing to the rise
in international oil prices and the increase in the quantities of
crude exported.
International oil prices remain worryingly high even after
discounting the effects of Hurricane Katrina. Crude prices
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fluctuated in the range of 60-66 dollars a barrel during the last
three months of 2005, affected by inventory levels particularly in
the United States and by escalating geopolitical factors including
the turmoil in a number of countries. Prices were also buoyed by
the threats to oil production in Nigeria as well as weak refining
capacity owing to sluggish investment in this area. Although the
effects of high oil prices on the world economy were less severe
than expected, the harm suffered by oil importing developing
countries was substantial and only partially mitigated by the
firming of non-fuel commodities.
Other Developing Countries
Economic growth fell in Africa from 5.5% in 2004 to 5.2% in
2005 and in Central and Eastern Europe from 6.5% to 5.3%
during the same period. In the Commonwealth of Independent
States, economic growth shrank from 8.4% in 2004 to 6.5% in
2005, while in the Western Hemisphere it fell from 5.6% to 4.3%
during the same period.
Growth improved in some individual countries as a result of the
increase in the prices of primary commodities, oil and other
goods. Substantial reductions in debt ratios also helped in
boosting economic growth. Turmoil and unrest however remain
a cause for concern in several countries. Furthermore, the
Millennium Development Goals seem to be unattainable for
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many of the developing countries, which are in need of more
assistance and additional debt relief.
In some developing countries inflation is in the one digit area but
in most of them they are in the double or treble digit region.
These inflation rates must come down if economic growth is to
be boosted.
(B) DOMESTIC ECONOMIC DEVELOPMENTS
The year 2005 represented the last year of the second Five-Year
Plan for Economic and Social Development (2001-2005) as well
as of the Poverty Reduction Strategy PRSP (2003-2005). The
implementation of both plans was characterized by rising
international oil prices, which registered record levels
unprecedented in the past.
The official figures show that the Government’s share in oil
export revenues jumped to 3,115 million US dollars in 2005,
which is 38% higher than what was achieved in 2004. The main
reason behind the sharp increase in oil revenues in 2005 was the
substantial rise in international oil prices, which averaged US$
51.5 for the year or 41% higher than their level in 2004. The
quantity of oil exported in 2005, however, was 2% lower, in the
region of 60.5 million barrels.
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Oil revenues, as expected, have played a crucial role in the
growth of GDP, the expansion in national income and the
stimulation of economic activity in the country.
In accordance with the national accounts, GDP growth
accelerated from 3.9% in 2004 to 4.6% in 2005. Non-oil GDP
growth also firmed from 5.4% in 2004 to 6.1% in 2005. Gross
investment and domestic saving were respectively 22% and
21.4% of GDP, while gross national product per capita, based on
current prices, rose from US$ 650 in 2004 to US$ 724 in 2005.
On the fiscal front, the budget deficit fell to 1.4% of GDP in
2005, while gross public debt (domestic and external) shrank to
46% of GDP and on a net basis it retreated to 39%. External debt
service obligations were 5.7% of exports of goods and services.
In 2004 these ratios were 1.6%, 52%, 46% and 6.7%
respectively. Government oil revenues increased from 23% of
GDP in 2004 to 28% in 2005. Public expenditures rose from
34% of GDP in 2004 to 39% in 2005, while total revenue
coverage of total expenditures went up from 91% to 94%.
The increase in broad money supply retreated from 15% in 2004
to 14.4% in 2005, while private sector credit increased by 21%
during the latter year. The expansion in domestic liquidity was to
a large extent caused by the increase in net foreign assets of the
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banking sector, while the fall in net domestic assets played a
negative role on the growth of domestic liquidity in 2005.
The surplus in the overall balance of payments expanded from
US$ 532.3 in 2004 to US$ 584.4 in 2005, in part as a result of the
increase in international oil prices during the latter year, leading
to a substantial rise in the trade balance surplus. But the overall
balance surplus fell from 3.9% of GDP in 2004 to 3.7% in 2005.
The rise in the overall balance surplus was reflected in the
increase in the Central Bank of Yemen’s own gross foreign
reserves, which reached US$ 5,645.6 in 2005 equivalent to about
13 months of imports.
In response to the improvement in the foreign position, the
Central Bank of Yemen intensified its intervention in the
exchange market in order to replenish it with its needs of foreign
currencies and absorb excess liquidity with the aim of preserving
price stability. The US dollar rose only by 5% against the
Yemeni Rial in 2005, despite having risen by 15% against the
Euro, 14% against the Yen, 12% against the Sterling Pound and
8% against the SDR during the same year.
Average inflation as measured by the CPI was 11.8% in 2005 in
part owing to the adjustments in petroleum product prices, the
adoption of the new general wage structure as well as the
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increase in the international prices of imported goods. On the
other hand, the GDP implicit deflator was 13.6% in 2005.
Output
In 2005 the agriculture, forestry and fisheries sector achieved a
high growth rate of 6.3% which was 3.2 percentage points higher
what was realized in 2004. Manufacturing also flourished for it
grew at a fast rate of 8.8% in 2005, which is 5.1 percentage
points higher than the 2004 rate. Furthermore, the electricity,
water and gas sector continued to show strong growth which
increased from 8.1% in 2004 to 9.9% in 2005.
Construction activity, however, slowed down from a growth rate
of 6.7% in 2004 to 2.7% in 2005. The oil sector contracted for
the 3rd consecutive year registering a decline of 4.4% in 2005
compared with 4.6% in 2004.
On the other hand, the services sector continued to perform well
achieving a growth rate of 5.6% in 2005 compared with 6.5% in
2004. The growth rate of finance, insurance, real estates and
business services jumped from 3.7% in 2004 to 6.7% in 2005.
Activity continued to flourish in the transport, warehousing and
communications sector which grew at a rate of 7.5% in 2005
compared to 10.4% in 2004. Activity also continued to flourish
in the area of wholesale and retail trade, restaurants and hotels,
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــCHAPTER ONE WORLD ECONOMIC SITUATION 13
the growth rate of which increased from 6.1% in 2004 to 6.8% in
2005.
Overall final consumption increased by 19.2% in 2005 to reach
78.6% of GDP against 78.4% in 2004. The growth rate of public
final consumption fell from 10.5% in 2004 to 6.8% in 2005,
while that of private final consumption increased from 18.9% in
2004 to 21.8% in 2005, reflecting the high population growth rate
and the flourishing economic activity.
In view of the deficit in net factor income from abroad, gross
national product at current prices expanded by 19.5% in 2005
compared with 16.8% in 2004, while gross disposable national
income at current prices grew by 19% in 2005 compared with
13.4% in 2004, as a result of the increase in net current transfers
from abroad.
Public Finance
Public revenues increased from 782.5 billion Rials (30.7% of
GDP) in 2004 to 1108 billion Rials (36.5% of GDP) in 2005,
reflecting an increase in oil as well as non-oil revenues. Public
expenditure also increased from 33.6% of GDP in 2004 to 38.8%
in 2005, as a result of an increase in current and capital and
development expenditures. Current expenditures increased by
47% in 2005 representing 77% of total public expenditures and
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــCHAPTER ONE WORLD ECONOMIC SITUATION 14
30% of GDP. Capital expenditures, on the other hand, increased
by 6.6% in 2005 and represented 18% of total expenditures and
7% of GDP. These developments led to an increase in the budget
deficit on a cash basis.
Public Debt (domestic and external)
Gross domestic public debt increased by 15.4% in 2005 to reach
YR 395.8 billion or 13.1% of GDP, while on a net basis it was
YR 179.8 billion or 5.9% of GDP, after taking into account
government deposits at the Central Bank. The external public
debt fell 3.2% in 2005 to reach US$ 5,167.9 million or 33% of
GDP, which is one of the lowest ratios in the Middle East. The
average external public debt per capita is US$ 258.
Money and Credit
The Central Bank of Yemen continued to conduct its monetary
policy with the aim of achieving price stability. Reserve
requirement ratio on foreign currency deposits, unchanged since
February 2003, was raised from 20% to 30% at the end of June
2005. These reserves bear no interest. The benchmark minimum
interest rate and the reserve requirement ratio on Rial deposits
remain unchanged since July 2000 at 13% and 10% respectively.
In the context of the efforts made to improve the investment
climate in the land, to implement the economic and social reform
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــCHAPTER ONE WORLD ECONOMIC SITUATION 15
programs, to strengthen the role of the private sector as an active
partner in the development of the country and to spread and
deepen the banking habit and awareness, a number of new bank
branches, Islamic as well as conventional, were opened all over
the country in 2005. There has been a substantial increase in
electronic bank services offered to the public. Furthermore,
licences were issued in 2005 for the opening of new banks in the
country. The number of cheques cleared in 2005 rose
substantially. So did the number of accounts opened at the
banks. Most banks raised their paid up capital in compliance
with the orders of the Central Bank.
In 2005, narrow money increased by YR 52 billion, demand
deposits by YR 19 billion and currency outside banks by YR 33
billion. Quasi money increased by YR 80 billion as a result of
the expansion of saving, earmarked, time and foreign currency
deposits. Foreign currency deposits, relative to Rial deposits,
increased from 31% of broad money at the end of 2004 to 34% at
the end of 2005. Quasi-money in Rials fell from 38% of Rial
broad money in 2004 to 36% in 2005, while currency in
circulation increased a little to 48% of Rial broad money.
The balance sheet of the Central Bank of Yemen increased in
2005 by YR 150 billion (14%) to reach YR 1,230 billion,
compared with a lesser increase in 2004 amounting to YR139
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــCHAPTER ONE WORLD ECONOMIC SITUATION 16
billion (15%). On the assets side in 2005 the increase was
concentrated in net foreign assets, while net claims on
Government fell, as a result of the increase in oil revenues. On
the liabilities side, the increase was concentrated in base money
and public sector deposits, while the decrease was mainly in
certificates of deposit.
In order to replenish the exchange markets with foreign
currencies for import financing, the Central Bank of Yemen sold
US$ 1,174 million in 2005 against 740 million in 2004. There
was a small increase in the rate of the dollar at the end of the year
from 185.87 Rials in 2004 to 195.08 Rials in 2005. The average
exchange rate was 184.78 Rials in 2004 and 191.42 Rials in
2005.
The consolidated balance sheet of the banks operating in the
country in 2005 showed an increase of YR 97 billion (14%)
reaching a level of YR 784 billion at the end of the year. The
deposits of the 15 conventional and Islamic banks rose by YR 64
billion (11%) to a level of YR 638 billion. Most of the increase
was in foreign currency deposits, which rose by 20% while quasi-
money deposits increased by 5%. There was no change worth
mentioning in Rial demand deposits. Lending to the private
sector rose from 33% of Rial deposits in 2004 to 38% in 2005.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــCHAPTER ONE WORLD ECONOMIC SITUATION 17
Lending in foreign currencies also increased as a ratio of total
lending to the private sector from 45% to 46%.
There is no doubt that an increase in the volume of credit to the
private sector stimulates economic activity and strengthens
growth, but the role of banks in financial intermediation, despite
the relative improvement, remains limited. In 2005, banks
employed about 66% of their assets in guaranteed and risk-free
investments consisting of foreign assets, treasury bills,
certificates of deposit and Central Bank balances. This ratio was
68% in 2004. Credit to the private sector increased from 27% of
total bank assets in 2004 to 28% in 2005, two-fifths of which
were taken up by trade finance. However, most of the credit is
concentrated in short term maturities. Short-term loans and
advances formed 38% of total credit, while medium- and long-
term loans were unchanged at 4% of total credit.
Balance of Payments
The balance of payments showed an overall surplus of US$ 584.4
million in 2005 (3.7% of GDP) compared with a lower surplus
of US$ 532.3 million in 2004. This outcome is to a large extent
reflected in the surplus realized in 2005 in the current account.
The financial and capital account balance moved from a surplus
of US$ 255 million in 2004 to a deficit of US$253.5 million in
2005. The current account balance in 2005 registered a surplus
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــCHAPTER ONE WORLD ECONOMIC SITUATION 18
of US$ 633.2 million (4.1% of GDP) compared with US$ 224.6
million (1.6% of GDP) in 2004.
The surplus on the trade account registered unprecedented levels
in 2005 reaching US$ 1,700 million or 10.8% of GDP. But the
deficit on the services account widened from US$ 690 million in
2004 to US$ 860 million in 2005. The large deficit on the income
account, which hit US$ 1,613 million or more than 10% of GDP,
had a negative effect on the current account surplus.
Net current transfers played a positive role in maintaining the
current account surplus at its present level, despite having
declined slightly from US$ 1,444 million in 2004 to US$ 1,406
million in 2005.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــCHAPTER ONE WORLD ECONOMIC SITUATION 19
Table (1) Main Economic Indicators
2003 2004 *2005 Population in millions 18.9 19.5 20.0 Output and Prices Gross Domestic Product at current prices Billion rails 2,177.5 2,552.0 3,033.4 Million dollars 11,870 13,811 15,847 per capita Gross National aproduct in dollars 578 650 724 change in percent Gross Domestic Product at current prices 14.9 17.2 18.9 Gross Domestic Product at constant prices 3.8 3.9 4.6 Real non-oil Gross Domestic Product 4.9 5.4 6.1 Real oil Gross Domestic Product -2.1 -5.0 -4.7 Gross Domestic Product deflator 10.8 12.8 13.6 CPI (average change) 10.8 12.5 11.8 CPI (end of period change) 13.6 10.0 19.8 Crude oil average export price $/barrel 27.9 36.6 51.5 Public Finance As % of GDP Total Revenues and grants 30.9 31.5 36.5 Oil and gas revenues 22.1 22.7 27.8 Non oil revenues 8.5 8.0 8.8 Grants 0.4 0.7 … Total Expenditure 35.7 33.6 38.8 Current expenditure 26.7 24.2 29.9 Development expenditure 9.1 7.8 7.0 Overall balance (cash basis) -4.4 -2.2 -2.3 Financing 3.7 1.6 1.4
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــCHAPTER ONE WORLD ECONOMIC SITUATION 20
Table (1) ) Cont'd Main Economic Indicators
2003 2004 *2005 Outstanding Total Public Debt 51.8 45.7 39.1 Domestic, net 6.9 6.8 5.9 Foreign 44.9 38.9 33.2 External Debt Service as % of exports of goods & services 4.6 6.7 5.7 Money and credit change in percent Broad Money Supply (M2) 20.0 15.0 14.4 Private sector Credit 26.3 33.5 21.3 Benchmark deposit rate (% per annum) 13.0 13.0 13.0 Velocity of Circulation (non oil GDP/M2) 1.9 1.9 2.0 Foreign Sector Million dollars Exports (FOB), out of which 3,924.4 4,675.7 6,413.2 Crude Oil 3,452.7 4,303.2 5,952.0 Imports (FOB) -3,557.4 -3,858.6 -4,712.9 Services, Income and Transfers (net) -191.3 -592.6 -1,067.1 Financial & Capital Account including net errors & omissions 159.9 307.7 -48.8 Overall Balance 335.6 532.3 584.4 Gross Foreign Reserves of Central Bank 5,011.0 5,690.3 6,142.7 Own Gross Foreign Reserves of Central Bank** 4,734.6 5,397.3 5,645.6 In months of imports 14.0 14.8 12.6 Current Account as % of GDP 1.5 1.6 4.1 Exchange rate YR/US$ (end of period) 184.31 185.87 195.08 * Preliminary
** Gross reserves after deductingcommercial bank foreign currency deposits with Central Bank.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 21
Chapter Two
Production
(1) GROSS DOMESTIC PRODUCT
Despite the turbulence and turmoil experienced by the region,
Yemen realized stability which had positive effect on the
economic performance. Gross domestic product at constant
market prices increased by 4.6% in 2005 compared with 3.9% in
2004. Real non-oil GDP expanded by 6.1% in 2005, compared
with 5.4% in the previous year earmarked to the regional
developments and the reform policy adopted. As a result of the
increase in the GDP deflator by 13.6%, GDP at current prices
expanded by 18.9% in 2005 compared with a rate of 17.2% in
2004.
At constant prices, the personal and social services sector grew
by 18.7% in 2005. It is still the highest among all the sectors of
the economy with 0.7 percentage points increase over 2004
growth. The next highest growth rate 9.9% was achieved by the
electricity, water and gas sector compared with 8.1% in 2004.
The manufacturing industry sector achieved a substantial growth
of 8.8% against 3.7% in 2004. Despite of the retraction of the
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 22
transport and communication sector from 10.3% in 2004 to 7.5%
in 2005, it achieved progress in its relative share compared to
other sectors. Trade, restaurants and hotels sector registered a
growth rate of 6.8% compared with 6.0% in 2004 attributable
partially to the improvement in the tourism industry. Next came
the real estate and financial services sector with growth rate of
6.7% in 2005 compared with 3.6% in 2004. The agricultural and
forestry sector achieved a growth of 6.3%. It was higher than the
previous year's growth rate of 3.1% attributable to the positive
effects of rain falls on the agriculture sector. The government
services grew to 4.3% in 2005 against 4.0% in 2004. The
activities of non-profit making enterprises realized a minor
growth of 0.12 percentage points over 2004 growth rate. The
construction sector growth rate retracted from 6.7% in 2004 to
2.7% in 2005. The performance of the household sector improved
achieving 1.5% growth compared with 0.9% in 2004. The
extracting industry performance realized minor improvement. Its
retraction rate declined from 4.6% in 2004 to 4.4% in 2005
attributable to decline of output, despite price increase in
international oil market.
Taking into account that net factor income from abroad registered
a negative figure of YR 239 billion in 2005 against YR 214
billion in 2004, gross national product at current market prices
increased by 19.5% in 2005 compared with 16.8% in 2004.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 23
As a result of the increase in net current transfers from the rest of
the world by YR13.0 billion or 4.9% in 2005, disposable gross
national income at current prices rose by 19.0% in 2005
compared with 13.4% in the previous year. National savings from
disposable gross national income increased by 17.8% in 2005
compared with a retraction of 3.3% last year.
Table (2)
Economic Growth Rates at Current and Constant Prices
(Percentages) At Current Prices At Constant Prices
(1990 = 100)
Year
Gross
Domestic
Product
at Market
Prices
Non-Oil
Gross
Domestic
Product
National
Disposable
Income
Gross
Domestic
Product
at Market
Prices
Non-Oil
Gross
Domestic
Product
2002* 12.46 14.02 11.38 3.49 4.06
2003** 14.94 14.34 12.57 3.77 4.88
2004** 17.20 15.37 13.41 3.87 5.42
2005** 18.86 17.46 18.97 4.60 6.07
Source: Central Statistical Organization
* Preliminary
** Preliminary Estimated Figures
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 24
The outcome of the above developments was that gross national
product per capita increased by 11% from US dollars 650 in 2004
to US dollars 724 in 2005.
(2) GDP SECTOR DEVELOPMENTS
In 2005 the rate of change in value added at constant market
prices for most economic sectors ranged from a positive 18.7%
for social and personal services to a negative 4.4% for extracting
sector. As table (3) shows, goods producing sectors grew by
3.52% in 2005 against 1.09% in the previous year. Yet their
contribution to GDP at constant market prices fell by 0.5
percentage points from 2004. The combined services sectors
expanded by 5.6% against 6.5% in 2004. Their contribution to
GDP rose from 52.7% in 2004 to 53.2% in 2004.
In the goods producing sectors, electricity, water, and gas sector
is the highest among goods producing sectors achieving growth
of 9.9% in 2005 against 8.1% in 2004, thus maintaining its last
year's contribution to GDP of 1.4%. Next, was manufacturing
sector with a growth rate of 8.8% in 2005, i.e. 5.1 percentage
points higher than 2004. Yet, its contribution to GDP increased
by only 0.4 percentage points. Agriculture and fisheries increased
by 6.3% in 2005 against 3.1% in 2004. However, the sector’s
contribution to GDP increased slightly by 0.32 percentage points
attributable to a favorable weather conditions. The construction
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 25
sector witnessed a remarkable decrease of 4.1 percentage points
compared with last year. Its contribution to GDP retracted by
0.04 percentage points in 2005. Despite the improvement in the
retraction rate of the extracting sector from 4.6% in 2004 to 4.4%
in 2005, its contribution to GDP decreased by 1.23 percentage
points in 2005 attributable to the decline in crude oil production.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 26
رسم بياني
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 27
Table (3)
Growth Rates of Economic Sectors at Constant Market Prices
(1990 = 100)
(In Percentages)
Description 2002* 2003** 2004** 2005**
Agriculture and Fishing 0.18 2.13 3.14 6.30
Mining Industries 0.75 -1.76 -4.56 -4.40
Manufacturing Industries 3.86 3.94 3.68 8.82
Electricity and Water 6.46 7.23 8.05 9.93
Construction 6.59 7.50 6.74 2.68
Total Commodity Producing
Sectors
1.46 1.55 1.09 3.52
Trade, Restaurants and Hotels 6.99 7.10 6.05 6.75
Transport and
Communication
6.04 5.90 10.35 7.51
Finance, Real Estate &
Business Services
-2.75 4.03 3.60 6.68
Social and Personal Services 13.49 24.68 18.05 18.72
Producers of Government
Services
4.23 4.01 4.04 4.26
Non-Profit Institutions 1.27 0.63 0.93 1.54
Household Sector 2.79 3.83 3.33 3.45
Total Services Sectors 5.57 5.98 6.50 5.57
GDP at Market Prices 3.49 3.77 3.87 4.6 Source: Central Statistical Organization
* Actual Preliminary Figures
** Estimated Preliminary Figures
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 28
Table (4) Relative Importance of Economic Sectors to
Gross Domestic Product at Constant Market Prices (1990=100) (In Percentages)
Description 2002* 2003** 2004** 2005**
Agriculture and Fishing 20.52 20.20 20.06 20.38
Mining 16.37 15.49 14.24 13.01
Manufacturing Industries 9.45 9.46 9.44 9.82
Electricity and Water 1.27 1.31 1.36 1.43
Construction 2.11 2.19 2.25 2.21
Total Commodity
Producing Sectors
49.72 48.65 47.35 46.85
Trade, Restaurants and
Hotels
8.54 8.81 8.99 9.18
Transport and
Communication
12.23 12.48 13.25 13.62
Finance, Real Estate &
Business Services
8.87 8.89 8.87 9.05
Producers of Government
Services
20.40 20.45 20.48 20.41
Other 0.24 0.72 1.06 0.89
Total Services Sectors 50.28 51.35 52.65 53.15
GDP at Market Prices 100.00 100.00 100.00 100.00 Source: Central Statistical Organization
* Actual Preliminary Figures
** Estimated Preliminary Figures
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 29
In the services sectors, social and personal services maintained its
highest growth rate in 2005. It achieved 18.7% growth rate i.e.
0.7 percentage points higher than what was realized in 2004. The
growth rate of transportation and communications sector fell
from 10.3% in 2004 to 7.5% in 2005 while its contribution to
GDP rose slightly to 13.6% in 2005 from 13.3% in the previous
year. The real growth rate of trade, restaurants and hotels realized
a 0.7 percentage points than what was realized last year with a
slight increase in its contribution to GDP at constant market
prices by 0.2 percentage points over what was achieved in the
previous year attributable to improvements in the tourism
industry.
Financial and real estate services achieved a growth rate of to
6.7% in 2005 against 3.6% in 2004 and its contribution to GDP
increased to 9% compared with 8.9% in 2004. Government
services expanded by 4.3% in 2005 and its contribution to GDP
remained unchanged in 2005 at a rate of 20.4%. Non-profit
enterprises' growth improved from3.3% in 2004 to 3.5% in 2005.
The rate of growth of the household sector improved slightly
from 0.9% in 2004 to 1.5% in 2005.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 30
(3) EXPENDITURE ON GROSS DOMESTIC PRODUCT
There has been a remarkable change in 2005 vis-à-vis 2004 in the
growth rates of expenditure items on GDP and their relative
contribution to it at current market prices. Gross fixed capital
formation contributed positively to GDP growth. The expenditure
on total consumption was the main contributor to GDP and its
growth and in particular private consumption.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 31
Table (5) Main Indicators of GDP Expenditure Components at
Current Market Prices (In percentage)
2004* 2005* Description
Relative import-ance to GDP
Growth Rate
Contri-bution to GDP Growth
Relative import-ance to GDP
Growth Rate
Contri-bution to GDP Growth
Final Gross Consumption
78.41 17.40 13.62 78.64 19.21 15.06
Final Public Consumption
13.49 10.54 1.51 12.13 6.83 0.92
Final Private Consumption
64.92 18.94 12.11 66.51 21.77 14.13
Gross Investment
18.98 -4.20 -0.98 21.88 37.03 7.03
Gross Fixed Capital Formation
19.50 2.38 0.53 21.18 29.13 5.68
Change in Stock
-0.52 -167.81 -1.51 0.70 259.64 1.35
Exports of goods and services
36.77 19.22 6.95 34.01 9.92 3.65
Less imports of goods and services
-34.16 6.36 2.39 -34.35 20.10 6.87
GDP at Market Price
100.00 17.20 17.20 100.0 18.86 18.86
Source: Central Statistical Organization
* Estimated Preliminary Figures
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 32
Estimates of expenditure on total consumption increased by
19.2% in 2005 against 17.4% last year. Public consumption
expanded by 6.83% in 2005 and its contribution to GDP at
current market prices was 12.13%. It accounted for 0.92
percentage points of the GDP growth rate that year. The increase
in private final consumption was 21.77% in 2005. Its
contribution to GDP was 66.51% and accounted for 14.1
percentage points of GDP growth rate. Gross fixed capital
formation grew by 29.13% in 2005. Its contribution to GDP was
21.18% and positively accounted for 5.68 percentage points of
the GDP growth. In the external balance on goods and services,
exports of goods and services contributed for 3.65 percentage
points of the GDP growth rate, while imports of goods and
services accounted for 6.87 percentage points of the GDP growth
rate.
(4) PRICES
Annual average inflation (CPI) declined from 12.5% in 2004 to
11.8% in 2005 partially as a result of favorable weather
conditions and heavy rain fall which led to the increase of supply
of goods. Furthermore, the depreciation of the Euro, Japanese
Yen and Pound Sterling might have an effect on decline of the
annual average inflation. The price adjustments undertaken by
the government on some oil products in July 2005, and the shift
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 33
to the new wages and salaries structure commencing July 2005
led to the increase of end of period inflation rate, but its effect on
the average annual inflation rate was slighter, since the price and
wage adjustments were undertaken in the second half and were
not reflected in the first half of the year.
The GDP deflator rose from 12.8% in 2004 to 13.6% in 2005
while the deflator for non-oil GDP rose from 9.4% in 2004 to
10.7% in 2005.
Table (6) Inflation Rates*
(Changes in %) Description 2002 2003 2004 2005
Consumer Price Index1 (annual average)
All-items 12.2 10.8 12.5 11.8 Core Inflation2 6.8 11.9 12.0 14.6 Consumer price Index (end of period)
All-items 4.3 13.6 10.0 19.8 Core Inflation2 4.5 12.1 14.6 20.2 GDP deflator 8.7 10.8 12.8 13.6 Non-oil GDP deflator 9.6 9.0 9.4 10.7
* Source : Central Statistical Organization 1 November 1999=100 2 Excluding Qat
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 34
(5) INVESTMENT The General Investment Authority issued licenses for 333 projects in 2005, lower by 29 projects from the previous year's level or 8%. Yet, total cost of the projects increased by YR 1885 million or 1.7% over last year's level.
In 2005 the number of licenses issued for investment projects in manufacturing were 182 or 54.7% of total projects licensed in that year. It retracted by 6 projects or 3.2% from 2004 level, accounting for 75.4% of the total value in 2005 against 66% in 2004. Licenses for investment in services were next in number amounting to 71 projects compared with 81 projects in 2004, and its ratio to total number of projects was 21.3% in 2005 against 22.4% in 2004. Its value was less by YR5360 million accounting for 14.6% of total value in 2005 compared with 19.6% in 2004. Investment projects licensed for tourism amounted to 47 projects accounting for 14.1% of the total number of licenses and 6.9% of the total value in 2005. It is 23% below the number of licenses and 2.3% below the total value of 2004. Licenses were given for investment projects in agriculture amounting to 25 projects accounting for 7.5% of total number of licenses and 2.1% of total value in 2005 compared with 23 projects accounting for 6.4% of total projects and 2.3% of total value. Licensed projects in fisheries were 8 projects accounting for 1% of total value in 2005 compared with 9 projects accounting for 4.9% of total value in 2004.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 35
Table (7)
Distribution of Investment Projects
licensed by the General Investment Authority
(in YR Million)
(6) AGRICULTURAL PRODUCTION
Area and output of main agricultural crops table shows that the
area allocated for cereals production increased by 0.48% and
production by 1.57%. It is below 2004 achievements where area
cultivated increased by 28.78% and production by 16.75%. The
acreage of vegetables increased by 1.71% and their production
retracted by 1.84%. It is remarkable that the area dedicated for
the cultivation of cash crops continued its retraction by 79.11% in
2005 against 7.79% in 2004. The area allocated for fruit
cultivation which shrank by 17.78% in 2004 increased by 2.43%
2004 2005
No. % Value % No. % Value %
Manufacturing 188 51.9 75355 66.0 182 54.7 87426 75.4
Agriculture 23 6.4 2650 2.3 25 7.5 2421 2.1
Fishery 9 2.5 5560 4.9 8 2.4 1154 1.0
Services 81 22.4 22363 19.6 71 21.3 17003 14.6
Tourism 61 16.8 8246 7.2 47 14.1 8055 6.9
Total 362 100 114174 100 333 100 116059 100
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 36
in 2005 accompanied by production increase of 3.01%. The
acreage of legume production which shrank by 31.17% in 2004
registered an increase of 8.85% in 2005. Production of legumes
increased by 10.34% compared with a retraction of 8.84% in
2004. Fodder cultivation acreage increased by 0.76% with
production increase of 0.53%.
Table (8)
Area and Output of Main
Agricultural Crops* 2004 2005
Agricultural
Crops
Area1 Grow
-th
Prod.2 Growth Area1 Grow-
th
Prod.2 Grow
-th
Cereals 685491 28.78 487944 16.75 688752 0.48 495591 1.57
Vegetables 72364 1.26 898586 7.83 73599 1.71 882053 -1.84
Cash Crops3 944291 -7.79 843951 43.5 197273 -79.11 190360 -77.4
Fruits 80835 -17.8 742408 0.84 82796 2.43 764790 3.01
Legumes 33891 -31.2 54222 -8.84 36890 8.85 59831 10.34
Fodder 121878 6.11 1533159 7.04 122803 0.76 1541288 0.53
* Source : Ministry of Agriculture 1 Area in Hectares 2 Production In Tons 3 Coffee, Sesame, Cotton, Tobacco and Qat
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 37
Table (9)
Number of Animals
2004 2005
Number
(1000)
Growth % Number
(1000)
Growth %
Goats 7755 17.7 8012 3.3
Lamb 7668 4.9 7835 2.2
Cows 1398 2.9 1442 3.1
Camels 347 25.3 365 5.2 Source : Ministry of Agriculture.
Table (10)
Animal Productions in Tons
2004 2005
Production Growth
(%)
Production Growth
(%)
White meat 110976 2.0 113195 2.0
Eggs (millions) 908 2.0 930 2.4
Hides & skins 9515 2.0 9715 2.1
Wool 3501 2.0 3573 2.1
Honey 759 1.1 807 6.3
Source : Ministry of Agriculture.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 38
Table (11)
Fish and Aquatic Catch
(Quantity in Thousand Tons, Growth in
Percent and Value in Million rials)
2004 2005
Qty % Value % Qty % Value %
Superficies 228 12.3 36747 32.3 216 -5.26 44118 20.06
Deep Sea Fish 2.4 -81.8 276 -75.9 1.5 -37.5 179 -35.14
Molluses &
Crustaceans
27 92.9 7528 -21.4 21 -22.22 6654 -11.61
Total 257 12.7 44551 15.7 239 7.0 50951 14.37
Source: Ministry of Fish Wealth
In 2005 the number of goats went up by 3.3%, lamb by 2.2%,
cows by3.1% and camels by 5.2 %. The production of white
meat increased by 2%, eggs by 2.4%, hides and skins by 2.1% in
2005. Honey production increased by 6.3% in 2005 compared
1.1% last year.
In 2005, fish real production retracted by 7.0% partially due to
the effect of tsunami hurricane on fish farms and the increase of
production costs as a result of the oil price adjustments
implemented in July 2005, while production value increased by
14.37% attributed to the increase of fish prices.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Two Production 39
(7) EDUCATION
Table 12 shows that in academic year 2004/2005 the number of
students attending various stages of education increased by 309
thousand or 6.8% compared with 5.7% in the academic year
2003/2004.
Table (12)
Number of students at various stages
of Education
(In thousands)
2003/2004 2004/2005
Stage Male Female Total Male Female Total
Basic
Education
2425 1530 3955 2660 1574 4234
Secondary
Education
411 178 589 412 207 619
Total 2836 1708 4544 3072 1781 4853
Source: Ministry of Education
In basic education, the number of male students increased by
9.7%, while the number of female students increased by 2.9% in
2004/2005. In secondary education, the number of male students
increased by 0.2% while the number of female students increased
sharply by 16.3%.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 41
Chapter Three
Government Finance
Domestic and foreign financing data of 2005 budget indicates
that a deficit of YR 41.1 billion or 1.4% of GDP was realized,
against a deficit of YR 40.9 billion or 1.6% of GDP in 2004.
I. Public Revenues:
In 2005, public revenues recorded an increase by YR 325.5
billion, or 42.0% of that of last year, whereby they rose from YR
782.5 billion in 2004 to YR 1108 billion in 2005. The increase
concentrated in oil and gas revenues. Revenues from exports of
crude oil recorded an increase of 39.0%, while domestic oil and
gas revenues rose by 55.0%. Additionally, non-oil revenues
(represented by tax and non-tax revenues) grew by 31.0%.The
ratio of public revenues to GDP rose from 30.7% in 2004 to
36.5% in 2005.
1.Oil and Gas Revenues:
In 2005, oil and gas revenues increased by YR 263.1 billion, or
45.0% of that of last year, whereby they rose from YR 579.1
billion in 2004 to YR 842.2 billion in 2005. Contribution of oil and
gas revenues to total government revenues increased from 74.0%
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 42
in 2004 to 76.0% in 2005. Their ratio to GDP rose from 22.7% in
2004 to 27.8% in 2005. Oil and gas revenues include revenues of
exports of crude oil and revenues of domestic oil and gas.
(a) Exports of Crude Oil:
In 2005, exports of crude oil recorded an increase of YR 141.9
billion or 39.0% of that of last year. They rose from YR 360.7
billion in 2004 to YR 502.6 billion in 2005. Accordingly, ratio of
revenues from crude oil exports to GDP increased from 14.1% in
2004 to 16.6% in 2005 as a result of the rise of average export
prices from US$36.6/barrel to US$51.5/barrel.
Table (13) Government Revenues (YR billions)
Items 2004 2005* Total Revenues and Grants: Total Revenues: - Oil and Gas Revenues -Crude Oil Exports -Domestic Oil & Gas Revenues - Non-oil Revenues
- Tax Revenues, of which: - Direct Taxes - Indirect Taxes, of which :
- Customs Duties - Non-tax Revenues Grants
801.2 782.5 579.1 360.7 218.4 203.4 177.3
70.3 107.0
51.9 26.1 18.7
1108.0 1108.0 842.2 502.6 339.6 265.8 215.7 95.7
120.1 52.1 50.1
* Preliminary
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 43
رسم بياني
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 44
(b) Domestic Oil and Gas Revenues:
In 2005, domestic oil and gas revenues recorded an increase of
YR121.2 billion, or 55.5% than that of last year. They rose from
YR 218.4 billion in 2004 to YR 339.6 billion in 2005.
Accordingly, their ratio to GDP increased from 8.6% in 2004 to
11.2% in 2005, while their contribution to total oil revenues
stepped up from 38.0% to 40.0%. This was basically attributed to
adjustment in oil products prices, which took place in July 2005.
2. Non-oil Revenues:
Non-oil revenues realized an increase of YR 62.4 billion, or
31.0% over that of 2004. These revenues rose from YR 203.4
billion in 2004 to YR 265.8 billion in 2005. However, their
contribution to total government revenues retracted from 26.0%
to 24.0%, while their ratio to GDP increased from 8.0% to 8.8%.
Non-oil revenues include tax and non-tax revenues.
(a) Tax revenues:
In the year 2005, tax revenues recorded an increase of YR 38.4
billion, or 22.0% over that of 2004. They grew from YR 177.3
billion in 2004 to YR 215.7 billion in 2005. Their contribution to
total non-oil revenues decreased from 87.0% in 2004 to 81.0% in
2005, while their ratio to GDP slightly increased from 7.0% to
7.1%. Tax revenues include direct and indirect taxes. Direct taxes
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 45
increased by 36.0% from 70.3 billion in 2004 to YR95.7 billion
2005. Indirect taxes (which include customs duties) increased
from YR107.0 billion in 2004 to YR120.1 billion in 2005, an
increase of YR13.1 or 12.2%. On July 18, 2005 two laws were
issued : Law No.(41) concerning customs duties tariff which
includes exemptions and large decrease of tariff and law No.(42)
concerning general sales tax which states 5% as (GST) over large
range of goods.
(b) Non-tax Revenues:
In 2005, non-tax revenues (which include charges and profit
transfers) realized an increase of YR 24.0 billion or 92.0%. They
grew from YR 26.1 billion in 2004 to YR 50.1 billion in 2005.
Their contribution to total non-tax revenues increased from
13.0% in 2004 to 19.0% in 2005, while their ratio to GDP rose
from 1.0% in 2004 to 1.7% in 2005.
II. Public Expenditures:
In 2005, public expenditures increased by YR 319.7 billion or
37.0%. It boosted from YR 858.0 billion in 2004 to YR 1177.7
billion in 2005. Its ratio to GDP also rose from 33.6% in 2004 to
38.8% in 2005. Public expenditures include current expenditures
and development capital expenditures.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 46
1.Current Expenditures:
In 2005, current expenditures recorded an increase of YR 289.4
billion or 47.0%. It grew from YR 618.5 billion in 2004 to YR
907.9 billion in 2005. Its contribution to total public expenditures
increased from 72.1% in 2004 to 77.1% in 2005, while its ratio to
GDP rose from 24.2% to 29.9%. Current expenditures include
wages and salaries (civilian), materials and services, defense
(wage and non wage), interest obligations, transfers and subsidies
and other current expenditures.
(a) Wages and Salaries (Civilian):
In 2005, civilian wages and salaries recorded an increase of YR
38.1 billion or 24%. They rose from YR159.5 billion in 2004 to
YR 197.6 billion in 2005, attributable to the increase of wages
and salaries of public sector low-income civil servants by 40.0%
and for high-income civil servants by 20.0% commencing June
2004 and to the increase resulted to the shift in the general
structure of wages and salaries commencing July 2005.
(b) Materials and Services:
Materials and services expenses increased by YR13.1 billion, or
92.0%. They rose from YR 14.2 billion in 2004 to YR 27.3
billion in 2005. Their contribution to total current expenditures
increased from 2.3% in 2004 to 3.0% in 2005.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 47
(c) Defense (Wage and Non Wage):
Defense expenditures increased by YR 57.4 billion or 42.0%. It
rose from YR 135.9 billion in 2004 to YR 193.3 billion in 2005.
However, its contribution to total current expenditures decreased
from 22.0% in 2004 to 21.0% in 2005. Its ratio to GDP increased
from 5.3% in 2004 to 6.4% in 2005 partly as a result of the
increase of wages and salaries.
Table (14) Government Expenditure
(YR billion) Item 2004 2005*
Total Government Expenditure 858.0 1177.7 Current Expenditures: 618.5 907.9 - Wages and Salaries (Civilian) 159.5 197.6 - Materials and Services 14.2 27.3 - Defense (wage and nonwage) 135.9 193.3 - Interest Obligations 54.0 70.7 - Domestic (Net) 44.9 60.1 - Foreign 9.1 10.6 - Transfers & Subsidies 230.6 384.9 - Subsidies 152.4 286.0 - Current Transfers 78.2 98.9 - Other Current Expenses 24.3 34.1 Capital Development Expenditures 198.9 212.0 Net Lending 40.5 57.7
* Preliminary
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 48
رسم بياني
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 49
(d) Interest Obligations:
In 2005, interest obligations recorded an increase of YR 16.7
billion or 31.0%. They rose from YR 54.0 billion in 2004 to YR
70.7 billion in 2005. However, their contribution to total current
expenditures retracted from 8.7% in 2004 to 7.8% in 2005, while
their ratio to GDP increased from 2.1% in 2004 to 2.3% in 2005.
Interest obligations include domestic and foreign interest
obligations. Domestic interest obligations represent 85.0% of the
total interest obligations in the year 2005, against 83.0% in 2004.
They increased from YR 44.9 billion in 2004 to YR 60.1 billion,
or 34%. Foreign interest obligations rose by YR 1.5 billion, or
16.5% from YR 9.1 billion in 2004 to YR 10.6 billion in 2005.
However, their ratio to total interest obligations dropped from
17.0% in 2004 to 15.0% this year.
(e) Transfers and Subsidies:
Transfers and subsidies expenditures increased by YR154.3
billion or 66.9% in 2005. They boosted from YR 230.6 billion in
2004 to YR 384.9 billion in 2005. Their ratio to total current
expenditures rose from 37.3% in 2004 to 42.4% in 2005 and to
GDP from 9.0% to 12.7%. Transfers and subsidies expenditures
represent amounts of subsidies and current transfers. Amounts of
subsidies increased by YR 133.6 billion or 88.0%. They rose
from YR152.4 billion in 2004 to YR 286.0 billion in 2005. Their
ratio to GDP hiked from 6.0% in 2004 to 9.4% in 2005. This was
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 50
attributable basically to the rise in international oil prices (despite
the price adjustment of some oil products in July 2005).
However, current transfers rose by YR 20.7 billion or 26.0%
from YR78.2 billion in 2004 to YR 98.9 billion in 2005.
(f) Other Current Expenditures:
Other current expenditures recorded an increase of YR 9.8
billion, or 40.0%. It rose from YR 24.3 billion in 2004 to YR
34.1 billion in 2005. Its ratio to total current expenditures slightly
decreased from 3.9% in 2004 to 3.8% in 2005.
2. Development Capital Expenditures:
In 2005, development capital expenditures realized an increase of
YR 13.1 billion or 6.6%. It increased from YR 198.9 billion in
2004 to YR 212.0 billion in 2005. Its ratio to total public
expenditures dropped from 23.0% in 2004 to 18.0% in 2005
while its ratio to GDP decreased slightly from 7.8% to 7.0%.
Overall Balance
Domestic and foreign financing data of 2005 budget indicates
that a deficit of YR41.1 billion was realized compared with a
deficit of YR 40.9 billion in 2004. The deficit realized in 2005
represents 1.4% of GDP, compared with 1.6% of GDP in 2004.
Coverage of revenues for expenditures rose from 91.2% in 2004
to 94.1% in 2005.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 51
Table (15)
Overall Balance of Government Finance
(YR billion)
Item 2004 2005*
Total Public Revenues 782.5 1108.0
- Grants 18.7 …
Total Public Expenditures 858.0 1177.7
Overall Balance (on commitment basis) -56.8 -69.7
Pending Obligations … ….
Overall Balance (on cash basis) -56.8 -69.7
- Financing 40.9 41.1
Privatization … …
External Financing (Net) 17.1 34.2
Domestic Financing (Net): 23.8 6.9
- Banking System -20.0 -27.0
- Central Bank of Yemen -66.1 -48.7
- Commercial Banks 46.1 21.7
- Non-Banking Financing 43.8 33.9
Discrepency 15.9 28.6 * Preliminary
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 52
رسم بياني
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 53
III. Domestic Public Debt:
Under circumstances of rising government expenditures and the
budget deficit realized, gross domestic public debt increased by
YR 52.8 billion in 2005, or 15.4% over that of last year. It rose
from YR 343.0 billion in 2004 to YR 395.8 billion in 2005, while
its ratio to GDP decreased from 13.4% to 13.1%. This contributes
to the absorption of surpluses of pension funds and sterilization
of excess liquidity in the economy. Treasury bills in the original
auction (primary market) formed the basic tool for domestic
borrowing. At the end of 2005, its share in total domestic debt
amounted to 83.0% compared with 80.4% in 2004. Purchase
value of treasury bills in circulation amounted to YR 328.5
billion at the end of 2005 compared with YR 275.7 billion at the
end of 2004. Re-purchase operations did not record significant
change at the end of 2005 and remained at the level of 2004 at
YR 65 billion. Its share in gross domestic public debt retracted
from 19.0% in 2004 to 16.4% this year.
On considering government deposits at the Central Bank of
Yemen, net domestic public debt, at the end of 2005, decreased to
YR 179.8 billion or 5.9% of GDP, compared with YR 174.0
billion at the end of 2004, or 6.8% of GDP. Also, the ratio of net
domestic public debt to total public debt has increased from
14.9% in 2004 to 15.1% in 2005.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 54
Distribution of Treasury Bills by Subscribers:
Out of the total purchase value of the outstanding treasury bills,
the portfolio of banking sector recorded an increase in its share
from 34.0% at the end of 2004 to 34.3% at the end of 2005. This
portfolio boosted from YR 93.8 billion in 2004 to YR 112.7
billion in 2005, or 20%. On the other hand, the portfolio of the
non-banking sector (pension funds, public enterprises and private
sector) of treasury bills in the original auction rose by 18.6%
amounting to YR215.8 billion in 2005 compared with YR181.9
billion at the end of 2004. However, its share to total treasury
bills retracted from 66.0% in 2004 to 65.7% at the end of 2005.
Table (16)
Domestic Public Debt (YR. billion)
Items 2004 2005 1- Overdrafts from Central Bank -- -- 2- Treasury Bills (Purchasing Value): 275.7 328.5 Banking Sector 93.8 112.7 Non-Banking Sector 181.9 215.8 3- Government Bills (Sold to YBRD) 2.3 2.3 4- Re-Purchasing: 65.0 65.0 Banking Sector 65.0 65.0 Non-Banking Sector … … 5- Gross Domestic Public Debt 343.0 395.8 6- Government Deposits at the Central Bank -169.0 -216.0 7- Net Domestic Public Debt 174.0 179.8
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 55
Distribution of Treasury Bills by Terms:
The ratio of 3-month bills to the total purchase value of treasury
bills increased from 42.2% at the end of 2004 to 43.0% at the end
of 2005. Also the share of the 6-month bills increased slightly
from 20.9% to 21.5%. In contrast the share of one-year bills
retracted from 36.9% to 35.5.
Table (17)
Distribution of Treasury Bills by Terms (Purchase Value)
Million Rials In Percent
2004 2005 2004 2005
3-months 116394.4 141100.5 42.2 43.0
6-months 57637.9 70666.0 20.9 21.5
12-months 101693.4 116779.2 36.9 35.5
Total 275725.7 328545.7 100.0 100.0
IV. External Public Debt:
Outstanding balance of external public debt amounted to
US$5167.85 million at the end of 2005 against US$5335.82
million at the end of 2004. It decreased by US$167.9 million or
3.2% over that of last year. The main reasons behind this
decrease are the depreciation of exchange rates of currencies of
some main creditors, in addition to the write-off of Abu Dhabi,
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 56
Hungary and some Japanese debts. These figures include in
addition to long-term rescheduled debts, the new loans and
credits concluded with the international and regional institutions
after Paris Club arrangements in the years 1996, 1997 and 2001.
Accordingly, the ratio of outstanding external public debt to GDP
declined from 39% at the end of 2004 to 33% at the end of 2005.
This ratio is considered among the lowest in the Middle East. Per
capita share of external debt amounts to US$258. The share of
external public debt to total public debt represents 84.9% at the
end of 2005, against 85.0% at the end of 2004. Out of the
outstanding external debt, the grant element amounted to
35.0%%, whereby the present value of external debt amounted to
US$3371.21 million as of 31/12/2005. In 2005, the ratio of
external debt service to export of goods and services amounted to
5.7% against 6.7% in 2004. Among debt creditors, there are three
groups of donors:
1.International Institutions:
Out of total external public debt outstanding at the end of 2005,
international institutions brought together the lion’s share, with
an outstanding debt of US$2513.81 million, or 48.64% of the
total outstanding debt. Loans of international institutions,
particularly IDA, do not bear interest and repaid through long
periods with 10 years of grace period.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 57
Among this creditor’s group, IDA ranked the first, with a total
debt amounting to US$1682.40 million, forming 32.56% of the
total outstanding balance of utilized loans. The Arab Fund for
Economic and Social Development ranked the second, with a
total amount of US$309.89 million, or 6.0% of the outstanding
balance. The International Monetary Fund (IMF) ranked the
third, with a total amount of US$292.27 million, or 5.66% of the
outstanding balance. Then, comes the International Fund for
Agricultural Development (IFAD), with a total amount of
US$104.03 million, or 2.01% of the total outstanding debt,
followed by the Islamic Bank for Development with a total
amount of US$55.9 million, or 1.08% of the total outstanding
debt. Other agencies within the framework of this group
represented by OPEC Fund, OAPEC Fund, European Union and
Arab Cities Organization with loan balances of US$35.55
million, US$28.36 million, US$5.19 million, and US$0.21
million, respectively.
2. Member countries of Paris Club:
The outstanding debt of Paris Club member countries on
31/12/2005 amounted to US$1743.04 million, or 33.73% of the
total outstanding debt. Among states of this group, Russia ranked
the first with a total debt of US$1257.45 million or 24.33% of the
total outstanding debt, followed by Japan, with an amount of
US$249.04 million, or 4.82% of the total outstanding balance.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 58
The USA ranked the third with a balance of US$99.59 million, or
1.93% of the total outstanding debt, followed by France, in the
fourth grade, with an amount of US$76.61million, or 1.48% of
the total outstanding debt. Loans extended by Spain, Italy,
Denmark, Netherlands and Germany amounted to US$28.87
million, US$24.24 million, US$3.10 million, US$2.5 million and
US$1.63 million, respectively.
3. Non-Member Countries of Paris Club:
The outstanding debt of non-member countries of Paris Club on
31/12/2005 amounted to US$910.99 million, or 17.63% of the
total outstanding debt. Among donors of this group, the Saudi
Development Fund came in the forefront, with an amount of
US$287.47 million, or 5.56% of the total outstanding debt. The
Kuwaiti Development Fund occupied the second class, with an
amount of US$175.55 million, or 3.40% of the total outstanding
balance. The Kuwaiti deposits ranked the third, with an amount
of US$144.6 million, or 2.80% of the total debt outstanding,
followed by China, with an amount of US$136.25 million, or
2.64% of the total debt outstanding, followed by Algeria with an
amount of US$80.25 million or 1.55% of the total outstanding
debt. Then come Poland, Korea, the the Iraqi Development Fund,
and India with loan balances of US$44.86 million, US$22.82
million, US$18.99 million and US$0.17 million respectively.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 59
Table (18)
External Public Debt as at 31st December 2005
(US$ millions)
Creditor Outstand-
ing Incl.
Arears
(%)
Present
Value
Grant
Elem-
ent (%)
Paris Club Countries 1743.04 33.73 1001.95 42.52
Russian Federation 1257.45 24.33 650.49 48.27
Japan 249.04 4,82 201.32 19.16
U.S.A 99.59 1.93 61.50 38.25
France 76.61 1.48 48.62 36.25
Spain 28.87 0.56 19.27 33.27
Italy 24.24 0.47 13.53 40.17
Denamrk 3.10 0.06 2.23 28.24
Netherlands 2.52 0.05 3.53 -21.32
Germany 1.63 0.03 1.95 -19.78
Non-Paris Club Countries 910.99 17.63 666.10 26.89
Saudi Arabia 287.47 5.56 146.89 48.90
Kuwait Dev. Fund 175.55 3.40 125.94 28.26
Kuwait (Deposit) 144.63 2.80 144.63 0.00
China 136.25 2.64 114.29 16.23
Algeria 80.25 1.55 70.47 12.19
Iraqi Dev. Fund 18.99 0.37 12.73 32.99
Poland 44.86 0.87 41.11 8.35
Korea 22.82 0.44 9.99 56.23
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Three Government Finance 60
Table (18) Cont'd
External Public Debt as at 31st December 2005
(US$ millions)
Creditor Outstand-
ing Incl.
Arears
(%)
Present
Value
Grant
Elem-
ent (%)
India 0.17 0.0 0.17 0.00
Int'l & Regional Financing
Institutions
2513.81 48.64 1703.20 32.25
IDA 1682.4 32.56 967.40 42.50
AFESD 309.88 6.0 298.24 3.76
IMF 292.27 5.66 267.04 8.63
IFAD 104.03 2.01 65.05 37.47
Islamic Dev. Bank 55.93 1.08 42.14 24.65
OPEC 35.55 0.69 31.24 12.11
OAPEC 28.36 0.55 28.36 0.00
EEC 5.19 0.10 3.52 32.19
Arab Cities Org. 0.21 0.0 0.20 3.43
Grand Total 5167.85 100.00 3371.21 34.77
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 61
Chapter Four
Money and Credit
I. Monetary, Credit and Banking Developments:
1. Monetary Policy:
The monetary policy maintained minimum benchmark interest
rate on deposits in Yemeni rial at 13% since July 2000. This rate
remains high compared with other foreign currencies. It also
continues to be positive (exceeds inflation rate). In the light of
developments in inflation and discipline in public finance, it is
possible to move interest rate downwards or upwards to ensure
monetary stability. In June 2005, statutory reserve requirements
on foreign currency deposits were raised from 20% to 30%
without interest. This increase aims at curbing speculation in
local currency, improving the competitiveness of the rial,
inducing savers to prefer local currency deposits, controlling
dollarization and pressures on exchange rate and absorbing
foreign exchange liquidity. Statutory reserve requirement on rial
deposits was maintained without any change at 10% since July
2000. The intervention of CBY through sales of foreign exchange
in the market increased from US$740 million in 2004 to
US$1174 million in 2005. This policy aims at providing market
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 62
requirements, curbing pressures on the exchange rate and
absorbing liquidity to maintain price stability. Due to the build up
of pressures on the exchange rate, 78% of CBY sales of foreign
exchange in the market were concentrated in the first half of
2005. After stability of fluctuation in the exchange rate, the
intervention of the monetary authorities was confined to US$259
million only in the second half of 2005. This means that raising
the reserve requirement accomplished its role. Dollarization
(foreign currency deposits/Total deposits) fell from 52% in June
2005 to 49.5% in December 2005.
2. Exchange Rate:
The rial exchange rate came under some pressures in the first half
of 2005 due to a stepping up of public expenditure on projects
with high foreign exchange component, in addition to unjustified
expectations of speculators. The Central Bank adopted some
measures, i.e. increasing intervention through sales of foreign
exchange in the market and raising reserve requirement on
foreign currency deposits from 20% to 30% without interest.
These measures contributed in the relative stability of rail
exchange rate. The US$ exchange rate against the Yemeni rial
did not rise more than 5.0% in 2005, i.e. from YR 185.87 per US
dollar at the end of 2004 to YR 195.08 per US dollar at the end of
2005. The average exchange rate increased by 3.6% from YR
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 63
184.78 per US dollar in 2004 to YR 191.42 per US dollar in
2005.
It is worth mentioning that the policy adopted is to float the
exchange rate and not to intervene for the purpose of influencing
it, except in the events to smooth large short-term fluctuations in
the market resulting out of non-economic factors. This policy
contributed towards enhancing foreign reserves. Since December
1996 Yemen has accepted the obligations of Article VIII of the
IMF Articles of Agreement, and therefore, the country has
maintained an exchange system free from restrictions on
payments and transfers of international current and capital
transactions.
3. Branches of Banks:
At the level of developments that took place in implementing
financial and economic reform programs, supporting domestic
and foreign investment climate, disseminating banking habit and
expanding the geographical range of banking services, a number
of new branches of banks were inaugurated in 2005, as shown in
the following table.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 64
Table (19)
New Branches of Banks in 2005
Bank New branches Date of
inauguration
Taiz-Khadir 13/3/2005
Sana'a – Taiz Street 23/5/2005
Ibb 8/10/2005
1. Yemen Bank for Recon. and Dev.
Hajja – Shafer 11/12/2005
Sana'a- Sheraton 24/5/2005
Sana'a- Haddah 15/6/2005
Say’un 22/8/2005
2. International Bank of Yemen
Taiz 21/12/2005
3. Tadamon Islamic Bank Aden-Compound 31/7/2005
Ibb 2/1/2005 4. Saba Islamic Bank
Dhamar 2/1/2005
5. Shamil Bank of Yemen and Bahrain Mukalla 28/5/2005
Hodeidah 10/9/2005
Dhale 8/11/2005
6. Coop. Agricultural Credit Bank
Sana'a – Hadda 21/11/2005
The role of commercial and Islamic banks was enhanced in
developing their operations and providing electronic banking
services through installation of ATMs in a number of commercial
and Islamic banks in Sana’a and other governorates as shown in
the following table:
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 65
Table (20)
The Distribution of ATMs by Banks
Bank Number of
ATMs
1.International Bank of Yemen 44
2.Tadamon Islamic Bank 21
3.Arab Bank 11
4.Yemen Commercial Bank 10
5.Saba Islamic Bank 10
6.Coop. Agricultural Credit Bank 7
7.Yemen Gulf Bank 5
8.Shamil Bank of Yemen & Bahrain 3
Total 111
New licenses were also granted during 2005 to a number of
money changers, as shown in the following table:
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 66
رسم بياني
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 67
Table (21)
Number of Licenses granted to Money Changers In 2005
Governorate Number of Licenses granted
1. Sana'a 168
2. Aden 44
3. Taiz 34
4. Ibb 31
5. Hodeidah 28
6. Mukalla 18
7. Hajja 18
8. Say'un 12
9. Al-Beidha 9
10. Shabwa 8
11. Sa'da 8
12. Al-Mahra 7
13. Dhale 6
14. Dhamar 4
15. Amran 2
16. Abyan 2
Total 399
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 68
4. Money Supply and Factors Affecting it:
Growth in broad money amounted to YR 132 billion in 2005, or
14.4%, compared with YR 120 billion in 2004, or 15.0%. The
increase in broad money in 2005, according to factors affecting it,
is the outcome of the rise in net foreign assets of the banking
system by YR 153.0 billion and the decline in net domestic assets
by YR 21 billion.
The main reason behind the increase in net foreign assets of the
banking system is the government’s share of crude oil exports,
which rose from US$2260 million in 2004 to US$3115 million in
2005, as a result of the increase of average export prices from
US$36.6/barrel to US$51.5/barrel. The aforementioned increase
in net foreign assets was distributed between the central bank and
commercial banks in the amounts of YR 150 billion and YR 3
billion respectively. The decline in net domestic assets in 2005, is
the outcome of the decrease in total budget financing (net) by YR
27 billion; and the contraction of other items (net) by YR 34
billion. This was encountered by a stepping up of credit to
nongovernment sectors by YR 40 billion. The decrease in total
budget financing (net) is attributable to the hike up of
government’s share of crude oil production, as a result of the rise
of world prices. The surplus in the position of budget with the
banking system increased from YR 20 billion in 2004 to YR 27
billion in 2005. Growth in credit to private sector amounted 21%
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 69
in 2005, against 34% in 2004. The contraction in other items
(net) is partially due to the rise in capital accounts of the banking
system and foreign exchange valuation.
In respect of domestic liquidity developments in 2005 according
to its components, the increase in liquidity was distributed in the
amount of YR 52 billion for money (M1) and YR 80 billion for
quasi-money. The increase of money (M1) was the outcome of
the rise of currency in circulation and Rial demand deposits, in
the amounts of YR 33 billion and YR 19 billion respectively,
compared with an increase by YR 29 billion and YR 14 billion
for each of them respectively in 2004. The recorded rise in quasi-
money in 2005 was the result of the increase in rial savings,
earmarked and time deposits by YR 12 billion and foreign
currency deposits (demand, savings, and time deposits) by YR 68
billion, compared with YR 60 billion and YR 17 billion for each
of them respectively in 2004. Due to the build up of pressures on
the exchange rate, 91% of the increase in foreign currency
deposits was concentrated in the first half of 2005. After relative
stability of the exchange rate, the increase in foreign currency
deposits was confined to YR 6 billion in the second half.
The ratio of currency in circulation to rial broad money rose
slightly from 47% in 2004 to 48% in 2005. The ratio or rial
quasi-money deposits to rial broad money declined from 38% to
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 70
36% during the same period. The ratio of foreign currency
deposits to broad money increased from 31% to 34%. This
reflects the pressures on the exchange rate, the unjustified
expectations of speculators and emergence of a trend towards a
shift from rial deposits to foreign currency deposits in the first
half of 2005. The Central Bank adopted some measures, i.e.
increasing intervention through sales of foreign exchange in the
market and raising reserve requirement of foreign currency
deposits. These measures led to a stability of rial exchange rate.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 71
Table (22) Monetary Survey
2003 2004 2005 End of Period Balances (YR Billion) Broad money 797.4 917.2 1049.5 Money 347.5 390.5 442.5 Currency Outside Banks 268.8 297.9 330.6 Demand Deposits 78.7 92.6 111.9 Quasi-Rial Money 179.4 239.5 251.5 Deposits in Foreign Currency 270.5 287.2 355.3 Net Foreign Assets 971.5 1117.6 1271.4 Central Bank of Yemen 816.6 962.2 1112.6 Commercial Banks 154.9 155.4 158.8 Net Domestic Assets - 174.1 -200.3 -221.9 Credit to Government (net) - 45.6 -64.8 -92.7 Total budget financing (Net) 12.1 -7.9 -34.9 Credit to non-Government 138.9 185.5 225.8 Private Sector 137.6 183.6 222.6 Public & mixed enterprises 1.3 1.9 3.2 Other items (Net) - 267.4 -321.0 -355.0 (Changes in % of broad money at beginning of period) Net Foreign Assets 20.1 18.3 16.8 Net Domestic Assets - 0.1 -3.3 -2.3 Total budget financing (Net) 12.6 -2.5 -2.9 Credit to private sector 4.3 5.8 4.3 (Changes in percent) Broad money 20.0 15.0 14.4 Rial broad money 18.3 19.6 10.2 Credit to private sector 26.4 33.5 21.3
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 72
II. Operations of the Central Bank of Yemen:
Balance Sheet of the Central Bank of Yemen: Total of balance
sheet of the Central Bank of Yemen increased from YR 1080
billion at the end of 2004 to YR 1230 billion at the end of 2005,
an increase of YR 150 billion, or 14% compared to an increase of
YR 139 billion, or 15%, last year.
Assets:
- Net foreign assets of the Central Bank increased from YR 962
billion at the end of 2004 to YR 1112 billion at the end of
2005, i.e. an increase of YR 150 billion, or 16%, compared
with an increase of YR 146 billion, or 18% in 2004. This is
attributed to the rise in the government’s share of crude oil
exports from US$2260 million in 2004 to US$3115 million in
2005, as a result of the increase of average export prices from
US$36.6/barrel to US$51.5/barrel, in spite of the decline of
the quantity exported from 169 thousands barrels a day to 166
thousands barrels a day during the same period. Relative
importance of gross foreign assets to total assets amounted to
97.4% at the end of 2005, against 97.9% at the end of lat
year.
- Net claims on government declined by YR 49 billion in 2005,
or 29% compared to a decrease of YR 66 billion, or 66% last
year. This is attributable to the rise in government’s share of
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 73
crude oil production, as a result of the increase of world
prices.
Liabilities:
- Reserve money (currency outside banks, currency with banks
and commercial banks deposits with the Central Bank)
increased from YR 414 billion at the end of 2004 to YR 488
billion at the end of 2005, i.e. an increase of YR 74 billion, or
18%, against an increase of YR 55 billion, or 15% last year.
This is attributed basically to the increase in currency issued
by YR 35 billion and the rise in banker’s deposits by YR 39
billion, as a result of raising reserve requirement on foreign
currency deposits and the increase in commercial banks
deposits in local and foreign currencies.
- In 2005, demand and foreign currency deposits of public
enterprises increased by YR 35 billion, or 76% against a
decline of YR 8 billion, or 15% last year.
- Deposits of pension funds (which were concentrated on
foreign currency deposits) amounted to YR 58 billion in
December 2005 compared to YR 57 billion in December
2004. These funds belong to tens of thousands of employees
in ministries, public authorities, armed forces, security,
public, mixed and private sector, who have retired or shall
retire from service.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 74
- Certificates of deposits issued by the Central Bank amounted
to YR 17 billion at the end of 2005, against YR 33 billion at
the end of 2004. Issuance of these certificates was started
temporarily in January 2001 to contribute towards absorption
of excess liquidity, attainment of monetary stability and
sterilizing foreign exchange inflows. The Central Bank bears
the burden of these certificates. This affects net profits of
CBY transferred to the government.
- Other items (net) increased by YR 8 billion in 2005, or 3%,
against an increase of YR 40 billion, or 20% last year. This is
attributed to the rise in foreign exchange valuation.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 75
Table (23) Balance Sheet of Central Bank of Yemen
(YR million) Description 2003 2004 2005
Foreign Assets 923526.9 1057491.9 1198321.6
Domestic Assets 17252.4 22498.1 31509.0
Claims on Government 205.6 2605.8 982.2
Claims on Public Enterprises - - -
Claims on Banks - - -
Fixed and Other Assets 17046.8 19892.3 30526.8
Assets = Liabilities 940779.3 1079990.0 1229830.6
Reserve money 359361.2 413674.3 487406.0
Currency in Circulation
outside banks
274272.3 302798.0 337529.1
Banker’s Deposits 85088.9 110876.3 149876.9
Government Deposits 100499.6 169014.6 216048.4
Public Enterprises Deposits 54208.8 46014.9 81013.1
Social Security Funds Deposits 57699.2 56891.6 57771.8
Certificates of Deposit 39429.4 33490.4 17230.0
Foreign Liabilities 106966.4 95244.1 85692.8
Other Liabilities 222615.5 265660.1 284668.5
Capital and Reserve 3673.0 10638.4 11715.2
Foreign Exchange Valuation 124377.5 151781.4 152579.4
SDR Allocations 7841.4 8284.0 8044.6
Other Liabilities 86723.6 94956.3 112329.3
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 76
Net Profits of the Central Bank of Yemen:
In 2005, net profits of the Central Bank amounted to YR 27
billion, against YR 9.5 billion in 2004, i.e. an increase of 184%.
Revenues picked up from YR 33.9 billion in 2004 to YR 52.2
billion in 2005, i.e. an increase of 54%. This is mainly attributed
to the rise in revenues from foreign interests from YR 16.7 billion
in 2004 to YR 32.3 billion in 2005, an increase of YR 15.6
billion, due to the rise in international interest rates, and the
increase in foreign reserves.
Expenditures (Excluding provisions) increased from YR 24.4
billion in 2004 to YR 25.2 billion in 2005, an increase of 3%,
attributed mainly to the rise in interest payments from YR 20.3
billion in 2004 to YR 20.9 billion in 2005. Out of these interest
payments in 2005, interest on certificates of deposits amounted to
about YR 3.4 billion.
Currency Issued:
In 2005, currency issued increased by YR 35 billion, or 11%, to
reach YR 338 billion, against an increase of YR 29 billion, or
10% in 2004. As for distribution of currency issued by
denominations, the YR 1000 banknote had the largest share
(48%) followed by the YR 500 banknote (30%), and then YR 200
and YR 100 banknotes (11% and 9% respectively). The
remaining 2% was shared among the other denominations of YR
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 77
50, 20, 10 and 5. The distribution of the various denominations
led to a state of equilibrium in the market, whereby the YR 1000
and YR 500 banknotes facilitated the processes of counting,
sorting, transporting and storing.
Clearing Rooms Operations:
In 2005, circulation of cheques in the clearing rooms recorded a
remarkable growth. About 598,000 cheques were transacted, with
a total value of YR 1020 billion, against 583,000 cheques, with a
total value of YR 802 billion in 2004, i.e. an increase of 3% in
number and 27% in value. The number of cheques rejected
without payment amounted to 18,000, with a total value of YR 51
billion in 2005, compared to 16,000 cheques, with a total value of
YR 38 billion in 2004.
The total number of accounts opened with the banking sector
amounted about 700,000 accounts, i.e. about 3.5% of the
population has bank accounts. This is a very low percentage, if
compared with other countries, like Saudi Arabia, in which this
percentage reached 26% of the total number of population. In
advanced countries like Australia, the number of bank accounts
rises to 140% of the total number of population. In Hong Kong,
where the population number is 7 million, there are 30 million
bank accounts, which mean that each person has 4 accounts.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 78
III-Banking Sector:
1. Development of Consolidated Balance Sheet of
Commercial Banks:
The total assets/liabilities of commercial banks (including
provisions) showed an increase of YR 97 billion in 2005, or 14%
to reach YR 784 billion, compared to an increase of YR 123
billion, or 22% in 2004.
Development of Assets:
- In 2005, net foreign assets increased by YPR 3 billion, or 2%
to reach YR 159 billion, while no significant changes have
taken place in 2004. However, the ratio of gross foreign assets
to total assets declined from 24% at the end of 2004 to 22% at
the end of 2005. The increase in net foreign assets (despite
raising reserve requirement) reflects the increase in foreign
currency deposits in the first half of 2005.
- Banker’s reserves (currency with banks + deposits with the
Central Bank) climbed by YR 40 billion, or 36% in 2005 to
reach YR 153 billion, against a growth of YR 25 billion, or
29% last year. Its ratio to deposits also increased from 20% at
the end of 2004 to 24% at the end of 2005. This is attributed
to raising the reserve requirement on foreign currency
deposits in June 2005 from 20% to 30%, in addition to the
increase in deposits in local and foreign currencies.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 79
- Portfolio investment of banks (treasury bills, repurchase operations, certificate of deposits and government bills sold to YBRD) increased in 2005 by YR 7 billion, or 4%, to reach YR 197 billion, against a growth of YR 39 billion, or 26% last year. The decline of its growth rate reflects the tendency towards investing in loans and advances.
- In 2005, credit to private sector increased by YR 39 billion, or 21% to reach YR 223 billion, against an increase of YR 46 billion, or 34% in 2004. This has contributed towards enhancement of economic activity and stimulating growth. However, the role of banks in financial intermediation continues to be limited. Credit to private sector represents no more than 28% of their total assets at the end of 2005, while they invest 66% of their assets in secured, risk-free assets in the form of foreign assets (22%), treasury bills, repurchase operations and certificates of deposits (25%) and deposits with the Central Bank (19%).
Development of Liabilities: - Deposits increased in 2005 by YR 64 billion, or 11% to reach
YR 638 billion1, against an increase of YR 99 billion, or 21% in 2004. Growth in deposits in 2005 is attributed to the growth of foreign currency deposits and rial quasi-money deposits by about 20%, and 5% respectively, while no significant changes have taken place in rial demand deposits.
1 Excluding deposits of nonresidents
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 80
Table (24) Consolidated Balance Sheet
Of Commercial Banks (YR million) Description 2003 2004 2005
Foreign Assets 158924.5 165128.3 170756.1 - Balance with banks abroad 146839.1 153711.9 154018.0 - Claims on nonresidents - 0.4 - - Others 12085.4 11416.0 16738.1 Reserves 87592.8 112678.7 152885.8 - Local currency 5459.8 4859.2 6909.6 - Deposits with Central Bank 82133.0 107819.5 145976.2 Certificates of Deposit 38779.4 31440.4 16630.0 Loans and Advances 251323.3 344233.4 406031.7 - Private Sector 137552.9 183610.9 222647.9 - Public enterprises 289.2 - 43.3 - Mixed enterprises 1013.8 1942.9 3135.3 - Government 112467.4 158679.6 180205.2 Other Assets 26375.7 32954.9 37576.8 Assets = Liabilities 562995.7 686435.7 783880.4 Foreign Liabilities 3990.7 9773.6 11995.3 - Deposits of foreign banks 2567.6 6974.7 9980.8 - Nonresidents deposits 1423.1 2798.9 2014.5 Deposits 474452.3 573540.1 637958.8 - Demand Deposits 56346.5 69627.5 69367.7 - Time Deposits 106947.2 148234.4 151588.6 - Savings Deposits 59572.5 72775.3 78634.0 - Earmarked Deposits 12909.0 18494.6 21308.6 - Foreign Currency Deposits 238576.1 264189.8 316977.3 - Government Deposits 101.0 218.5 82.6 Other Liabilities 84552.7 103122.0 133926.3 Capital and Reserves 31010.5 37250.5 48924.3 Other Liabilities 53542.2 65871.5 85002.0
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 81
رسم بياني
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 82
- In 2005, other net liabilities increased by YR 26 billion, or
37%, to reach YR 96 billion, against a growth of YR 12
billion, or 21% last year. This reflects partially the efforts of
the Central Bank that aim at enhancing capital adequacy of
commercial banks. Most banks raised their capital according
to the decision of the Board of Directors of CBY no. (12) Of
2004 which stipulates that banks should raise their capital to
YR 6 billion, provided that they pay 20% of the required
increase in capital annually starting in 2005 through 2009. At
the end of 1997, the adequacy of the banking sector was at
0.6%, which gradually improved until it reached 12% at the
end of 2005. According to Basle Commission Standards, this
is a high ratio. The Commission has determined that capital
adequacy should not be less than 8%. However, this ratio is
only an average for the whole banking sector, taking into
consideration that the adequacy of a small number of banks is
unsatisfactory, or negative, which affected this ratio. The
Central Bank carry out a quarterly rating for banks according
to international standards abbreviated in the name of
CAMEL.
2. Credit Facilities:
At the end of 2005, outstanding balance of credit facilities
granted by commercial banks to the private sector increased by
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 83
YR 39 billion, or 21%, compared to an increase of YR 46 billion,
or 34% in 2003.
As for sectoral distribution of credit facilities granted by
commercial banks, the share of financing of trade increased from
40% at the end of 2004 to 43% at the end of 2005. Relative
importance of financing of construction and agriculture increased
to 7.3% and 1.7% respectively in 2005 compared to 6.6% to
1.2% respectively in 2004. However, the share of industry
declined from 16% to 14%. The share of classified loans and
advances decreased from 17% to 16%. Classified loans and
advances are those for which provisions should be allocated at
various percentages (such as under monitoring, substandard,
doubtful and bad debts). In general, provisions for these loans
amounted 83% of their total, which is a high percentage. This
protects the banking sector from crises of non-performing debts.
Distribution of credit by term indicates that short-term loans and
advances acquired 38% of the total credit at the end of 2005
against 35% last year. Medium and long term loans maintained
their share of 4% during the same period. The share of
investments of Islamic banks to total credit declined from 43% to
42%.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 84
Lending in foreign currency to total lending to the private sector
increased from 45% in December 2004 to 46% in December
2005. The ratio of loans to deposits in Yemeni rial rose from 33%
at the end of 2004 to 38% at the end of 2005, due to the increase
of rial loans in percentage higher than that of rial deposits. As for
the ratio of loans to private sector to deposits in foreign
currencies, it increased from 31% to 32%. However, growth of
deposits in foreign currencies was lower than the increase of
lending in these currencies.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 85
Table (25)
Loans and Advances of Commercial Banks
To Nongovernment Sectors1
(YR million)
Description 2003 2004 2005
By Sector:
Agriculture and Fishing 711.0 2186.2 3876.9
Industry 21423.5 29200.8 30925.7
Construction 8873.3 12175.0 16207.4
Trade 52994.9 74418.6 96369.1
Financing of Exports 1349.6 2142.3 4074.9
Financing of Imports 20507.8 30567.0 45835.3
Financing Trade in
manufactured goods
31137.5 41709.3 46458.9
Others 27079.6 33699.7 38694.1
Classified Loans and Advances 26760.0 31930.9 36618.2
Total 137842.3 183611.2 222691.4
By Term:
Short-term Loans and Advances 51162.3 65152.9 83821.2
Medium and Long-term loans 5550.1 7263.6 8872.4
Investments of Islamic Banks 54369.9 79263.8 93379.6
Classified Loans and Advances 26760.0 31930.9 36618.2 1 Excluding capital contributions in mixed enterprises.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Four Money and Credit 86
رسم بياني
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 87
Chapter Five
External Sector
I. Balance of Payments
Despite the exposure of our country to many difficulties and
terrorist acts and the limited and scarce resources, Yemen has
accomplished significant achievements that enhance confidence
in the Yemeni economy. This reflected itself, particularly, on
Yemen transactions with the rest of the world during 2005.
The balance of payments is compiled in accordance with the 5th
edition of the IMF balance of payments manual (BPM5).
Preliminary data of 2005 indicate that the overall balance of
payments realized a surplus of US$584.4 million, against a
surplus of US$532.3 million in 2004. The ratio of the overall
surplus to GDP amounted to 3.7% in 2005, against 3.9% last
year. As a result, gross own foreign reserves of the Central Bank
increased from US$5397.3 million at the end of 2004 to
US$5645.6 million at the end of 2005, covering 13 months of
imports.
The surplus in the Balance of Payments is attributed to the
surplus in the current account, which amounted to US$633.2
million in 2005, against US$224.6 million last year. The ratio of
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 88
the current account to GDP increased from 1.6% to 4.1% during
the same period. On the other hand, surplus in trade balance
increased from US$817.1 million in 2004 to US$1700.3 million
in 2005, attributed to the increase in crude oil exports as a result
of the increase of oil prices in the international market. Deficit in
services balance increased by 24.7% and in income balance by
19.8%. Current transfers (net) decreased by 2.6%. The capital
account moved from a surplus of US$255.1 million in 2004 to a
deficit of US$253.5 million in 2005. For more analysis, the main
indicators and items of Balance of Payments shall be discussed
hereunder.
Table (26) Main Indicators of Balance of Payments As a Ratio of Gross Domestic Product1
Item 2004 20052 % %
Current Account 1.6 4.1 Trade Balance 5.9 10.8 Exports 33.8 40.5 Imports -27.9 -29.7 Services (Net) -5.0 -5.4 Income (Net) -9.7 -10.2 Current Transfers (Net) 10.4 8.9 Capital Account (Net) 1.8 -1.6 Overall Balance 3.9 3.7 1 At Current Prices 2 Preliminary Data
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 89
A- Current Account:
Current account represents transactions that pertain to goods,
services, income and current transfers. Current account for the
year 2005 realized a surplus of US$633.2 million. Ratio of this
surplus to GDP at current prices amounted to 4.1%, against a
surplus at 1.6% last year.
1- Goods and Services:
Surplus in goods and services balance increased from US$127.3
million in 2004 to US$840 million in 2005, attributed to the
increase of surplus in the trade balance despite the increase of the
deficit in the services account.
a- Trade Balance:
In 2005, the trade balance recorded a surplus of US$1700.3
million, against a surplus of US$817.1 million in 2004. Ratio of
this surplus to GDP during 2005 amounted to about 10.8%,
attributed to the increase of crude oil exports.
Exports:
Total value of exports increased from US$4675.7 million in 2004
to US$6413.2 million in 2005, i.e an increase of US$1737.5
million, or 37% over that of last year. Ratio of exports to GDP, in
2005, amounted to about 40.5%.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 90
Crude Oil Exports:
Total value of crude oil exports in 2005 amounted to US$5952
million, forming 93.0% of the total value of exports. Crude oil
exports increased from US$4303.2 million in 2004 to US$5952
million in 2005, i.e an increase of US$1648.8 million, or 38.3%
over last year, basically attributed to the increase in international
oil prices. On excluding the share of oil companies,
Government’s share of crude oil increased by 37.9% from
US$2259.2 million in 2004 to US$3114.9 million in 2005,
attributable to the rise in average export prices from
US$36.6/barrel to US$51.5/barrel, despite the slight decrease of
exported quantities from 169 thausand barrels per day to 166
thausand barrels per day.
Imports:
Imports increased by 22.1%, from US$3858.6 million in 2004 to
US$4712.9 million in 2005, to meet consumption and investment
needs.
2- Services (Net):
Deficit in the services balance increased by US$170.5 million, or
24.7% amounting to US$860.3 million during 2005 against
US$689.8 million during 2004. This is attributed to the increase
of total payments by US$230.4 million from US$1059.4 million
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 91
during 2004 to US$1289.8 million during 2005; while total
receipts increased by US$59.8 million from US$369.7 million
during 2004 to US$429.5 million during 2005.
It is worth mentioning that the ratio of total receipts to net
services in 2005 amounted to 49.9%, while that of payments to
net services amounted to 149.9%. The increase in the deficit of
services balance is attributed to the increase of service payments
of freight, insurance and other business.
3- Income (Net):
Deficit in the income balance increased by 19.8% from
US$1346.5 million during 2004 to US$1612.5 million during
2005. This is attributed to the increase of total payments by
US$340.6 million from US$1450.1 million during 2004 to
US$1790.7 million during 2005 as a result of the increase of the
earnings of foreign direct investment remitted to abroad.
4- Current Transfers (Net):
Net Current transfers balance surplus recorded a decrease of
US$38 million from US$1443.7 million in 2004 to approximately
US$1405.7 million in 2005. Receipts decreased by US$34.7
million compared with an increase of US$38.6 million during
2004, and payments increased by US$3.4 million during 2005
against a decrease of US$25.6 million during 2004.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 92
Government transfers receipt decreased by US$17.5 million in
2005, against an increase of US$22.2 million in 2004. Receipts
from transfers of other sectors recorded a decrease of US$20.6
million in 2005.
B- Capital and Financial Account:
This account forms the second component of the balance of
payments and represents the Government and private capital
movements, represented by foreign loans drawings, amortization
payments and movement of Government and private investments.
In 2005, this account has recorded a deficit of US$253.5 million,
against a surplus of US$255.1 million in 2004. Foreign direct
investment realized a deficit of US$302.1 million in 2005,
against a surplus of US$143.6 million in 2004. As for other
investments, the surplus amounted to US$48.5 million in 2005,
against a surplus of US$111.5 million in 2004. Ratio of the
deficit in the financial account to GDP in 2005 amounted to
approximately 1.6% compared with a surplus of 1.8% of GDP in
2004. As for drawings from foreign loans, it amounted to
US$271.2 in 2005 and its ratio to GDP amounted to 1.7%, which
is slightly higher than the ratio recorded in 2004. Amortization
obligations in 2005 amounted to US$222.3 million, and its ratio
to GDP amounted 1.4%, against 1.2% in 2004.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 93
C- Overall Balance:
Overall balance recorded a surplus of US$584.4 million in 2005,
and represented about 3.7% of GDP, against 3.9% last year. As a
result of the changes that took place in the current account and
capital and financial account, the monetary sector balances and
their transactions were affected. This increase is reflected by the
increase in net foreign assets of the Central Bank by US$764.3
million during 2005, against US$618.6 million during 2004. The
increase is basically attributed to the rise in international oil
prices, despite the slight decrease of exported quantities.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 94
رسم بياني
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 95
Table (27) Balance of Payments (US$ Million)
Items 20041 20051 Current Account: 224.6 633.2 Goods and Services 127.3 840.0 1- Trade Balance 817.1 1700.3 Exports: 4675.7 6413.2 Crude Oil 4303.2 5952.0 Government Share 2259.2 3114.9 Companies Share 2044.0 2837.1 Imports -3858.6 -4712.9 2- Services (Net) -689.8 -860.3 Credit 369.7 429.5 Debit -1059.4 -1289.8 Transportation -450.0 -547.1 Travel 13.3 13.5 Communication 41.2 41.2 Construction Services -107.8 -107.8 Insurance -87.8 -107.2 Other Business Services -111.2 -171.0 Government Services 22.6 28.1 3- Income (Net) -1346.5 -1612.5 Credit 103.6 178.2 Debit -1450.1 -1790.7 Direct Investment Income -1289.4 -1602.7 Portfolio and Other Investment Income 15.4 62.7 4- Current Transfers (Net) 1443.7 1405.7 Credit 1493.1 1458.4 Debit -49.4 -52.8 General Government 171.2 153.7 Other Sectors 1272.5 1251.9
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 96
Table (27) (Continued) Balance of Payments
(US$ Million) Items 20041 20051
Capital and Financial Account 255.1 -253.3 1- Financial Account 255.1 -253.5 1-1 Direct Investment 143.6 -302.1 of which : oil companies investment 143.6 -302.1 Inflows 898.1 932.3 Outflows -754.5 -1234.4 1-2 Other Investment 111.5 48.5 Government Loans (Net) 25.8 48.9 Drawings 191.4 271.2 Amortization Obligation -165.6 -222.3 Trade Credit -5.7 -109.0 Commercial Banks 4.8 22.1 Other Sectors 86.5 86.5 Errors and Omissions 52.6 204.7 Overall Balance 532.3 584.4 Financing -532.3 -584.4 a- Net Reserves (Increase -) -618.6 -764.3 Reserve -531.8 -713.8 Monetary Authorities Liabilities -86.7 -50.5 International Monetary Fund Loans (Net) -41.0 -55.9 Arab Monetary Fund Loans (Net) -50.4 0.0 Liabilities constituting Reserves of Foreign Monetary Authorities
4.7 5.4
b- Debt Relief and Arrears 86.3 179.9 1 Preliminary
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 97
II – Foreign Trade :
Foreign Trade statistics between Yemen and the rest of the world
during 2005 showed a positive development despite regional and
international uncertainities. This improvement was attributed to
the policies and measures taken by the government during this
year and the previous years, which enhanced trade and economic
partnership with all countries.
A. Trade Balance:
Trade balance surplus amounted to YR142950.3 million. i.e. an
increase of YR125887.5 million during 2005, compared with a
surplus of YR17062.8 million last year. This is attributable to the
increase of exports at higher pace than imports. Exports proceeds
during 2005 amounted to YR1074549.5 million increasing by
YR320953.6 million or 42.6% while imports increase was
26.5%.
Table (28) Trade Balance
(In Millions of Rials) 2004 2005 Trade balance 17062.8 142950.3 Exports1 753595.9 1074549.5 Imports 736533.1 931599.2
Source: Central Statistical Organization.
1Including Re-Exports
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 98
رسم بياني
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 99
B- Commodity Composition of Foreign Trade:
1.Exports
Exports and re-exports during 2005 amounted to YR1074549.4
million, i.e. an increase of YR320953.5 million or 42.6%
compared with a 10% growth last year. Total exports grew by
42.2% amounting to YR1040657.9 million, attributed to the
increase of the exports of oil and its products as a result of the
increase of international oil prices.
Re-exports during 2005 increased by YR12076.7 million or
55.4%. As a result, ratio of re-exports to GDP rose to 1.1%
during 2005 compared with 0.85% last year.
Analyzing the commodity composition of exports by SITC:
- Oil and its products: achieved a remarkable increase of
YR301709.4 million or 43.8% during 2005 compared with an
increase of YR69502.1 million or 11.2% last year, attributable
basically to the increase of international oil prices from
US$36.60/barell in 2004 to US$51.50/barell in 2005.
- Non-oil raw materials : recorded a lower increase of
YR9874.9 million of 24.5% during 2005, compared with
YR2013.7 million or 5.3% last year. The increase in the value
of non-oil raw materials is attributed to the increase of
foodstuffs, live animals, beverages and tobacco, and animal
and vegetable oil.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 100
Table(29) Exports by SITC group1
(In Millions of Rials) 2004 % 2005 % Food & Live Animals 33317.9 4.42 41795.3 3.89 Beverages and Tobacco 2596.6 0.34 4555.3 0.42 Raw Materials inedible 3474.0 0.46 2825.2 0.26 Mineral Fuel and Lub. Oil 688095.8 91.31 989805.2 92.11 Animals & Vegetables Oil 882.4 0.12 970.0 0.09 Chemicals 2151.3 0.29 2896.6 0.27 Manufactures Classified by Materials
2672.9 0.35 3456.7 0.32
Machinery & Transport Equipment
13114.7 1.74 19845.2 1.85
Miscellaneous Man. 7276.9 0.97 8290.6 0.77 Commodities not classified elsewhere
13.3 0.00 109.3 0.01
Total 753595.9 100.0 1074549.4 100.0 Remarks: Non-oil raw materials 40270.9 5.34 50145.8 4.76 Manufactured goods 25229.2 3.35 34598.4 3.22 Source: Central Stratistical Organization. 1Including Re-exports.
- Manufactured goods: recorded an increase of YR9369.2
million or 37.1% during 2005, compared with a decrease of
YR2827.6 million or 10.1% last year. The increase is attributed
to the increase of chemicals and its products, classified
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 101
manufactures, and machinery and transport equipment during
2005.
1.Imports:
Imports during 2005 increased by YR195066.1 million or 26.5%,
compared with an increase of YR62404.7 million or 9.3% during
2004.
Analyzing the commodity composition of imports by SITC:
- Oil and its products: recorded an increase of YR109781.5
million during 2005, compared with a decrease of YR10775.7
million last year.
- Non-oil raw materials: achieved a remarkable increase of
YR14093.0 million or 6.3% during 2005, compared with an
increase of YR27548.6 million or 14.0% during 2004. This
increase is attributed to the increase of foodstuffs and live
animals, and inedible raw materials imports.
- Manufactured goods: recorded an increase of YR71191.6
million or 16.9% during 2005, compared with an increase of
YR45631.3 million or 12.1% last year. This increase is
attributed to the increase of chemicals and its products from
YR45071.8 million to YR53828.3 million, and manufactures
classified by materials from YR136464.5 million to
YR196802.6 millioin.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 102
Table(30)
Imports by SITC group
(In Millions of Rials)
2004 % 2005 %
Food & Live Animals 181557.9 24.65 189410.2 20.33
Beverages and Tobacco 11591.0 1.57 13789.1 1.48
Raw Materials inedible 16488.9 2.24 20803.9 2.23
Mineral Fuel and Lub. Oil 89426.9 12.14 199208.4 21.38
Animals & Vegetables Oil 15048.4 2.04 14776.0 1.59
Chemicals 45071.8 6.12 53828.3 5.78
Manufactures Classified by
Materials
136464.5 18.53 196802.6 21.13
Machinery & Transport
Equipment
207304.4 28.15 209831.4 22.52
Miscellaneous Man. 32810.1 4.45 31859.0 3.42
Commodities not classified
elsewhere
769.2 0.1 1290.3 0.14
Total 736533.1 100.0 931599.2 100.0
Remarks
Non-oil raw materials 224686.2 30.51 238779.2 25.63
Manufactured goods 422420.0 57.35 493611.6 52.99
Source: Central Statistical Organization.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 103
C- Foreign Trade by Economic Blocks:
1- Exports:
The main development in the geographical distrribution of
exports is the decrease of the relative share of the Non-Arab
Asian Countries to 77.4% during 2005, against 82.8% during
2004, despite of the increase of exports value from YR623870.5
million to YR831297.5 million, i.e. an increase of YR207427.0
million or 33.2%. Next came Arab Countries with a relative share
increase to 10.3% during 2005, against 8.3% during 2004,
attributed to the increase of export value from YR62268.8 million
to YR110637.7 million, i.e. an increase of YR48368.9 million or
77.7%. Exports to other European countries increased to
YR58828.9 million compared with YR4360.5 million during
2004, an increase of YR54468.4 million. As a result, its relative
share increased from 0.58% to 5.5%. Exports to Amercian
countries amounted to YR35028.0 million compared with
YR8872.2 million last year, an increase of YR26155.8 with
relative share of 3.3%. The relative share of Australia and Pacific
(Oceania) decreased from 2.4% during 2004 to 1.8% during
2005, despite the increase of exports value by YR1111.3 million
or 6.1%, from YR18040.9 million during 2004 to YR19152.2
million this year.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 104
Table (31)
Exports1 by Economic Blocks
(In Millions of Rials)
2004 % 2005 %
Arab Countries 62268.8 8.26 110637.7 10.30
GCC 49954.7 6.63 90443.4 8.42
Other Arab Countries 12314.1 1.63 20194.2 1.88
Non-Arab Asian Countries 623870.5 82.79 831297.5 77.36
Non-Arab African Countries 22498.2 2.99 3079.7 0.29
EC 8730.3 1.16 9843.3 0.92
Other European Countries 4360.5 0.58 58828.9 5.47
East European Countries 11.5 0.00 426.1 0.04
American Countries 8872.2 1.18 35028.0 3.26
Australia and Pacific 18040.9 2.39 19152.2 1.78
Unspecified 0.1 0.00 1037.4 0.10
Others 4943.1 0.66 5218.6 0.49
Total 753595.9 100.0 1074549.5 100.0
Source: Central Statistical Organization. 1Including Re-exports.
2- Imports:
The main development in the geographical distribution of imports
is the increase of imports from Arab Countries amounting to
YR378384.9 during 2005 compared with YR281502.4 during
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 105
2004, i.e. an increase of YR96882.5 million or 34.4%, Mostly
imported from GCC countries.
Next came Non-Arab Asian Countries with imports value of
YR190792.0 million during 2005 compared with YR184006.6
million during 2004, an increase of YR6785.4 million or 3.7%.
Imports from EC countries amounted to YR138504.9 million
compared with YR140230.0 million, a decrease of YR1725.1
million or 1.2%. Imports from American Countries amounted to
YR91508.3 million, compared with YR70876.7 million, an
increase of YR20631.6 million or 29.1%. Its relative share also
increased from 9.6% to 9.8% during 2005. The relative share of
other European countries rose from 3.9% during 2004 to 8.5%
during 2005 attributed to the increase of imports from
YR28934.8 million to YR79280.2 million, an increase of
YR50345.4 million or 174%.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 106
Table (32)
Imports by Economic Blocks
(In Millions of Rials)
2004 % 2005 %
Arab Countries 281502,4 38.22 378384.9 40.62
GCC 245088.7 33.28 331286.1 35.56
Other Arab Countries 36413.7 4.94 47098.8 5.06
Non-Arab Asian Countries 184006.6 24.98 190792.0 20.48
Non-Arab African Countries 7111.1 0.97 25400.9 2.73
EC 140230.0 19.04 138504.9 14.87
Other European Countries 28934.8 3.93 79280.2 8.51
East European Countries 8319.6 1.13 12210.1 1.31
American Countries 70876.7 9.62 91508.3 9.82
Australia and Pacific 15124,5 2.05 9405.6 1.01
Unspecified 348.5 0.05 403.6 0.04
Miscellaneous 78.9 0.01 5708.7 0.61
Total 736533.1 100.0 931599.2 100.0
Source: Central Statistical Organization.
D- Foreign Trade by Countries:
1-Exports:
The increase of Exports specially Oil exports during 2005, has a
positive effect on the volume trade with some of Yemen’s trade
partners. Exports to China increased fromYR216014.0 million to
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 107
YR378976.3 million during 2005. Its relative share increased
from 28.7% during 2004 to 35.3% during 2005 ranking China in
the first position of importers from Yemen.
Year 2005 also witnessed the increase of exports to India from
YR99826.8 million to YR174394.9 million, an increase of
YR74568.1 million or 74.7%, ranking India in the second
position among importers from Yemen. Exports to Thailand
declined to YR127603.2 million during 2005 compared with
YR218192.6 million last year, a decrease of YR90589.4 million
or 41.5%. As a result, its relative share decreased from 28.9% to
11.9%.
Exports to Japan increased by YR47537.7 million from
YR20425.9 million last year to YR67963.6 million during 2005.
As a result, its relative share increased from 2.7% to 6.3%.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 108
Table (33)
Top Ten Importers1
(In Millions of Rials)
Country 2004 % 2005 %
China 216014.0 28.7 378976.3 35.3
India 99826.8 13.3 174394.9 16.2
Thailand 218192.6 28.9 127603.2 11.9
Japan 20425.9 2.7 67963.6 6.3
South Korea 24132.2 3.2 67532.9 6.3
Switzerland 4344.7 0.5 58826.2 5.5
U.A.E. 20101.2 2.7 40768.6 3.8
U.S.A. 8767.8 1.1 34934.0 3.3
Saudi Arabia 17810.6 2.4 24588.1 2.3
Kuwait 10978.8 1.5 22431.3 2.1
Others 113001.3 15.0 76530.5 7.1
Total 753595.9 100.0 1074549.5 100.0 Source : Central Statistical Organization. 1Including Re-exports.
Exports to South Korea also increased from YR24132.2 million
during 2004 to YR67532.9 million, an increase of YR43400.7
million. Its relative share rose from 3.2% to 6.3%. Exports to
Switzerland increased from YR4344.7 million to YR58826.2
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 109
million this year, hence, its relative share increased from 0.5% to
5.5%. The relative share of United Arab Emirates increased from
2.7% to 3.8% as a result of the increase of exports to UAE from
YR20101.2 million to YR40768.6 million, an increase of
YR20667.4 million.
2- Imports:
Imports from UAE increased from YR122814.4 million during
2004 to YR173561.3 million during 2005, ranking UAE in the
first position among Exporters to Yemen.
Next came Saudi Arabia, with an increase in imports from
YR64630.0 million during 2004 to YR81841.2 million during
2005, i.e. an increase of YR17211.2 or 26.6%. Imports from
Switzerland increased by YR50104.9 million or 175.7% from
YR28513.9 million during 2004 to YR78618.8 million during
2005. Imports from Kuwait increased from YR45585.6 million
during 2004 to YR61154.0 million during 2005, an increase of
YR15568.4 or 34.2%. Imports from China also increased by
YR9338.8 million or 19.8%, from YR47178.0 million during
2004 to YR56516.8 million during 2005. Imports from USA
increased from YR34373.8 million to YR41398.8 million during
2005, an increase of YR7025.0 million or 20.4%.
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــChapter Five External Sector 110
Table (34)
Top Ten Exporters
(In Millions of Rials)
Country 2004 % 2005 %
U.A.E. 122814.4 16.7 173561.3 18.63
Saudi Arabia 64630.0 8.8 81841.2 8.79
Switzerland 28513.9 3.9 78618.8 8.44
Kuwait. 45585.6 6.2 61154.0 6.56
China 47178.0 6.4 56516.8 6.07
U.S.A. 34373.8 4.7 41398.8 4.44
Brazil 23280.8 3.1 28729.7 3.08
Turkey 18162.1 2.5 28486.7 3.06
Germany 26574.9 3.6 26313.9 2.82
India 29781.5 4.0 26101.3 2.80
Others 295638.1 40.1 328876.8 35.30
Total 736533.1 100.0 931599.2 100.0 Source : Central Statistical Organization.
STATISTICAL
APPENDICES
Item/Year 1998 1999 2000 2001 2002 2003 2004 2005
Money 179927.2 207196.5 247248.4 282683.4 306449.5 347465.4 390541.2 442463.60
Currency in circulation outside banks 139668.4 166923.7 197122.5 212794.8 239329.3 268812.5 297938.8 330619.5
Demand Deposits 40258.8 40272.8 50125.9 69888.6 67120.2 78652.9 92602.4 111844.1
Quasi Money 153422.7 172097.7 227276.7 280366.1 358214.9 449906.4 526734.1 607045.20
Time Deposits 33041.1 30563.9 41781.5 50319.9 78491.5 106947.2 148234.4 151588.6
Saving Deposits 20705.3 25681.2 34651.8 40952.1 51581.5 59572.5 72775.3 78634.0
Foreign currency deposits 95992.1 111667.6 146151.1 184030.3 219108.4 270477.7 287229.8 355514.0
Earmarked deposits 3684.2 4185.0 4692.3 5063.8 9033.5 12909 18494.6 21308.6
Money Supply 333349.9 379294.2 474525.1 563049.5 664664.4 797371.8 917275.3 1049508.80
Factors affecting in money supply
Foreign Assets (Net) 112532.3 200028.6 487313.3 652083.1 838249.3 971494.3 1117602.5 1271389.6
Claims on Government (Net) 214745.4 167808.7 -4534.0 -51483.2 -119448.3 -45626.8 -64839.3 -92715.4
Claims on Private sector. 55629.8 63969.5 76220.9 95991.5 110014.6 138855.9 185553.8 225826.5
Other (Net) -49557.0 -52512.7 -84475.1 -133541.9 -164150.7 -267351.6 -321041.7 -354991.9
Ratio of Currency outside Banks to
Money Supply 33.7% 32.5% 31.5%41.5%41.9%
Appendix (1)Money Supply
(YR million)
44.0% 36.0%37.8%
120
Item/Year 1998 1999 2000 2001 2002 2003 2004 2005
Changes in Money 13543.2 27269.3 40051.9 35435.0 23766.1 41015.9 43075.8 51922.4
Currency outside banks 12764.7 27255.3 30198.8 15672.3 26534.5 29483.2 29126.3 32680.7
Demand deposits 778.5 14.0 9853.1 19762.7 -2768.4 11532.7 13949.5 19241.7
Changes in Quasi Money 21418.2 18675.0 55179.0 53089.4 77848.8 91691.5 76827.7 80311.1
Time deposits -891.2 -2477.2 11217.6 8538.4 28171.6 28455.7 41287.2 3354.2
Saving deposits 2582.9 4975.9 8970.6 6300.3 10629.4 7991.0 13202.8 5858.7
Foreign currency deposits 19581.9 15675.5 34483.5 37879.2 35078.1 51369.3 16752.1 68284.2
Earmarked deposits 144.6 500.8 507.3 371.5 3969.7 3875.5 5585.6 2814.0
Changes in Money Supply 34961.4 45944.3 95230.9 88524.4 101614.9 132707.4 119903.5 132233.5
Changes in factors affecting in money supply
Foreign Assets (Net) -32644.5 87496.3 287284.7 164769.8 186166.2 133245.0 146108.2 153787.1
Claims on Government (Net) 55218.8 -46936.7 -172342.7 -46949.2 -67965.1 73821.5 -19212.5 -27876.1
Claims on Private Sector. 16086.2 8339.7 12251.4 19770.6 14023.1 28841.3 46697.9 40272.7
Others (Net) -3698.5 -2955.7 -31962.4 -49066.8 -30608.8 -103200.9 -53690.1 -33950.2
Appendix (2)Changes in Money Supply and Factors affecting it
(YR million)
121
Item/Year 1998 1999 2000 2001 2002 2003 2004 2005Assets 359099.2 422854.4 520373.4 662500.2 809738.7 940779.3 1079990.0 1229830.6
Foreign Assets 138926.7 237686.5 482477.9 636988.7 792163.4 923526.9 1057491.9 1198321.6
Credits and Loans 197809.9 154856.4 12047.6 253.3 685.6 205.6 2605.8 982.2
Government 196701.5 153961.6 12047.6 253.3 685.6 205.6 2605.8 982.2
Public Corporations 1108.4 894.8 0.0 0.0 0 0 0 0
Commercial Banks 0.0 0.0 0.0 0.0 0 0 0 0
Fixed Assets after Depreciation 1265.8 1561.7 2030.6 2210.7 2675.5 2636 2971 3154
Other Assets 21096.8 28749.8 23817.3 23047.5 14214.2 14410.8 16921.3 27372.8
Liabilities 359099.2 422854.4 520373.5 662500.2 809738.7 940779.3 1079990.0 1229830.6
Currency in Circulation 142331.5 169083.7 201440.4 217193.0 243775.4 274272.3 302798.0 337529.1
Sight Liabilities 78816.9 91188.4 150053.7 200100.6 286942.8 336925.1 416287.8 521940.2
Government 16564.1 24439.8 77121.8 102853.3 147708.6 100499.6 169014.6 216048.4
Public Corporations 27754.4 22555.9 27652.9 43008.2 37568.6 54208.0 46014.9 81013.1
Pension Funds 1606.7 1655.1 2586.1 3635.0 47602.4 57699.2 56891.6 57771.8
Commercial Banks 32891.7 42537.6 42692.9 50604.1 54063.2 85088.9 110876.3 149876.9
Certificates of Deposits ـ ـ ـ ـ ـ ـ 40104.5 46807.0 39429.4 33490.4 17230
Foreign Liabilities 84137.8 101401.0 89146.8 100763.9 102545.0 106966.4 95244.1 85692.8
Capital and Reserves 600.0 600.0 1000.0 3000.0 3000.0 3673.0 10638.4 11715.2
Allocations of SDR's 5723.0 6299.9 6207.6 6253.3 6948.3 7841.4 8284.0 8044.6
Revaluation account 13231.3 9194.1 17390.7 37987.7 73977.5 124377.5 151781.4 152579.4 Others 34258.7 45087.3 55134.3 57097.2 45742.7 86723.6 94956.3 112329.3
(YR million)
Appendix (3)Assets and Liabilities of the Central Bank of Yemen
122
Item/Year 1998 1999 2000 2001 2002 2003 2004 2005
Assets 212059.2 242146.2 310585.1 375503.2 464004.4 562995.7 686435.7 783880.4
Reserves 35714.4 43630.7 45545.4 50646.7 55710.0 87592.8 112678.7 152885.8
Domestic Cash 2663.1 2160.0 4317.9 4398.2 4446.1 5459.8 4859.2 6909.6
Balances with CBY 33051.3 41470.7 41227.5 46248.5 51263.9 82133.0 107819.5 145976.2
Certificate of Deposits 0.0 0.0 0.0 29960.8 46207.0 38779.4 31440.4 16630
Foreign Assets 64857.2 70991.4 103339.8 120510.7 151981.4 158924.5 165128.3 170756.1
Banks Abroad 60342.1 66726.0 98341.5 114162.8 141759.3 146839.1 153711.9 154018
Others (Non-residents) 4515.1 4265.4 4998.3 6347.9 10222.1 12085.4 11416.4 16738.1
Credits and Loans 90483.2 102398.4 138919.1 150131.5 184433.3 251323.3 344233.4 406031.7
Government 36266.7 39972.4 63172.5 54813.9 75214.7 112467.4 158679.6 180205.2
Public Corporations 11.6 0.0 0.0 0.0 270.0 289.2 0.0 43.3
Private Sector 54204.9 62426.0 75746.6 95317.6 108948.6 138566.7 185553.8 225783.2
Other Assets 21004.4 25125.7 22780.8 24253.5 25672.7 26375.7 32954.9 37576.8
Assets and Liabilities of Commercial and Islamic Banks(YR million)
Appendix (4)
123
Item/Year 1998 1999 2000 2001 2002 2003 2004 2005
Liabilities 212059.2 242146.2 310584.8 375503.2 464004.4 562995.7 686435.7 783880.4
Deposits 165979.1 189845.0 249795.6 307308.6 387804.6 474452.3 573540.1 637958.8
Government 52.0 30.4 46.2 62.1 38.1 101.0 218.5 82.6
Demand 31490.2 29648.8 41004.1 48991.9 49818.6 56346.5 69627.5 69367.7
Time 24923.7 30426.5 41781.5 50319.9 78491.5 106947.2 148234.4 151588.6
Savings 20705.3 25681.2 34651.5 40952.1 51581.5 59572.5 72775.3 78634
In Foeign Currency 85123.7 99873.1 127620.0 161918.8 198841.4 238576.1 264189.8 316977.3
Earmarked 3684.2 4185.0 4692.3 5063.8 9033.5 12909.0 18494.6 21308.6
Foreign Liabilities 7113.8 7248.3 9357.6 4652.4 3350.5 3990.7 9773.6 11995.3
Banks Abroad 6164.1 6301.4 8506.0 3861.3 1908.3 2567.6 6974.7 9980.8
Non-residents 949.7 946.9 851.6 791.1 1442.2 1423.1 2798.9 2014.5
Loans from CBY 23.0 31.8 0.0 0.0 0.0 0.0 0.0 287.8
Capital and Reserves 17615.5 18766.6 19454.4 23851.8 27721.0 31010.5 37250.5 48924.3
Other Liabilities 21327.8 26254.5 31977.2 39690.4 45128.3 53542.2 65871.5 84714.2
Appendix (4) (Continued)Assets and Liabilities of Commercial and Islamic Banks
(YR million)
124
Demand Foreign Time Saving Earmarked Total Grand Total
Currency
1997 474.1 28874.7 64164.6 23984.7 18122.4 3539.6 138686.0 139160.1
1998 52.0 31499.3 85123.7 24923.7 20705.3 3684.2 165936.2 165988.2
1999 30.4 29648.8 99873.1 30426.5 25681.2 4185.0 189814.6 189845.0
2000 46.2 41004.1 127620.0 41781.5 34651.8 4692.3 249749.7 249795.9
2001 62.1 48991.9 161918.8 50319.9 40952.1 5063.8 307246.5 307308.6
2002 38.1 49818.6 198841.4 78491.5 51581.5 9033.5 387766.5 387804.6
2003 101.0 56346.5 238576.1 106947.2 59572.5 12909 474351.3 474452.3
2004 218.5 69627.5 264189.8 148234.4 72775.3 18494.6 573321.6 573540.1
2005 82.6 69367.7 316977.3 151588.6 78634.0 21308.6 637876.2 637958.8
End of Period Government
Appendix (5)
(YR million)Deposits of Commercial Banks by Type
Non-Government Sector
125
End of Period Interest on Loans 3 6 9 12 Savings
Months Months Months Months
1997 15-21 11 11 11 11 11
1998 14-20 15 15 15 15 15
1999 22-28 18 18 18 18 18
2000 15-20 13 13 13 13 13
2001 15-20 13 13 13 13 13
2002 15-20 13 13 13 13 13
2003 15-21 13 13 13 13 13
2004 15-21 13 13 13 13 13
2005 15-21 13 13 13 13 13
Interest on Deposits
Appendix (6)Interest Rates of Commercial Banks
(Percent per annum)
126
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %
1997 124370 ـ 236689 ـ 1111334 1 3602179 3 31055233 24 64204370 50 18650426 14 10551828 8 0 ـ 19298 ـ 129555727
1998 122397 ـ 249804 ـ 683568 1 2115615 1 16284816 11 46403398 33 36601019 25 28691445 20 11120115 7 19076 ـ 142291253
1999 122542 ـ 247145 ـ 649034 ـ 1556284 1 12841941 8 48589423 29 40819470 24 30469127 18 33769548 20 19131 ـ 169083645
2000 123196 ـ 288596 ـ 679223 ـ 1155644 1 11491829 6 50539856 25 43234535 21 31438918 16 62469481 31 19103 ـ 201440381
2001 122732 ـ 326812 ـ 807251 ـ 1083352 ـ 9839680 5 49760011 23 42286554 20 39112799 18 72236806 34 19096 ـ 215595093
2002 122188 _ 376324 ـ 829474 ـ 1047422 ـ 9155353 4 53353517 22 40919137 17 58802131 24 79150725 33 19091 ـ 243775462
2003 124402 _ 389677 920107 ـ 993968 ـ 9727335 4 53271466 19 41617717 15 75254911 27 91953519 34 19186 ـ 274272387
2004 124320 _ 425079 ـ 1081467 ـ 901567 ـ 10134130 3 49159080 17 39989863 13 87782006 30 113181297 37 19185 ـ 302797992
2005 126556 _ 457336 ـ 1165208 ـ 907918 ـ 6403876 2 31083072 9 36793113 11 100209283 30 160358838 48 19240 ـ 337524440
YR1000
Total
CoinsYR20 YR50 YR100 YR200
Year
YR1 YR5 YR10
Appendix (7) Currency Issued by Denominations
(YR 1000)
YR500
127
Bank Incorporation Head Paid up Capital Number ofDate Office (YR million) Agency % Branches
Central Bank of Yemen 1971 Sana’a 2,000 Government 100% 22
Yemen Bank for Recon. & Dev. 1962 Sana’a 2,800 Private Sector 49% 38
Government 51%
National Bank of Yemen 1969 Aden 4,000 Government 100% 31
Yemen Commercial Bank 1993 Sana’a 2,200 Private Sector 90% 8
Government 10%
Yemen Gulf Bank 2001 Sana’a 1,250 Private Sector 77% 2
Foreign 22%
Government 1%
Watani Bank 1998 Sana’a
International Bank of Yemen 1979 Sana’a 1,500 Private Sector 79.6% 9
Foreign 20.4%
Arab Bank Limited 1972 Sana’a 2,800 Foreign 100% 6
Calyon Corporate & 1975 Sana’a 2,243 Foreign 100% 5
Investment Bank
United Bank Limited 1972 Sana’a 2,205 Foreign 100% 2
Al-Rafidayn Bank 1982 Sana’a 1,255 Foreign 100% 1
Under Liquidation
Ownership of Capital
Appendix (8)Structure of Banking System
on 31/12/2005
128
Bank Incorporation Head Paid up Capital Number of
Date Office (YR million) Agency % Branches
Tadamon Islamic Bank 1996 Sana’a 3,750 Private Sector 96.7% 14
Foreign 3.3%
Islamic Bank for Development 1995 Sana’a 1,974 Private Sector 73.5% 5
Foreign 22.0%
Government 4.5%
Saba' Islamic Bank 1997 Sana’a 2,678 Private Sector 85% 9
Foreign 15%
Housing Credit Bank 1977 Sana’a 200 Private Sector 3% 2
Government 97%
Coop. Agricultural Credit Bank 1982 Sana’a 3,230 Private Sector 13.3% 37
Government 86.7%
Yemen Kuwait Bank 1979 Sana’a 1,812 Private Sector 100% 7
Shamil Bank of Yemen & Bahrain 2002 Sana’a 2,672 Private Sector 75% 3
Foreign 25%
Ownership of Capital
(Continued) Appendix (8)Structure of Banking System
on 31/12/2005
129
Appendix (9)Balance of Payments
(In Millions of USDollars )
2005*2004*200320022001200019991998199719961995633.2224.6148.7443.4670.91336.6549.7-318.322.3106.3183.7I- Current Account
1,700.3817.1376.9601.9766.41312.8357.8-785.1-132.5-30.8148.6 1. Trade Balance6,413.24675.73934.33684.43366.93797.22478.31503.72274.02262.71980.1 Exports of which5,952.04303.23459.13146.62905.13398.82131.21228.71944.91976.11735.0 Crude Oil3,114.92259.21828.41600.01585.41969.0993.0470.71012.2958.4777.5 Government share2,837.12044.01630.71546.61319.71429.81138.2758.0932.71017.7957.5 Oil companies share
-4,712.9-3858.6-3557.4-3082.6-2600.4-2484.4-2120.5-2288.8-2406.5-2293.5-1831.5 Imports
-860.3-689.8-685.8-679.7-677.6-598.6-535.5-518.5-469.8-369.7-459.9 2. Services balance429.5369.7317.7272.3170.1210.9183.2174.4207.6185.7179.4 Credit
-1,289.8-1059.4-1003.6-952.0-847.7-809.4-718.7-692.9-677.4-555.4-639.3 Debit-547.1-450.0-409.9-341.2-329.2-318.4-243.1-261.7-223.7-166.3-184.1 Transportation
13.513.361.927.5-40.72.9-75.4-45.9-54.3-23.3-25.6 Travel41.241.236.036.340.245.241.117.844.543.342.9 Communication
-107.8-107.8-34.3-29.9-38.7-51.0-125.4-94.2-69.0-59.9-56.4 Construction-107.2-87.8-80.9-70.1-59.1-56.5-48.2-52.1-50.9-38.9-42.6 Insurance-171.0-111.2-275.5-287.5-233.6-205.0-79.9-79.2-110.5-124.4-196.9 Other business services
28.122.616.8-14.8-16.5-15.7-4.5-3.2-5.9-0.22.8 Government services, nie
-1,612.5-1346.5-909.4-818.4-690.9-777.1-695.6-344.4-601.0-633.9-561.0 3. Income balance178.2103.698.9119.8178.5149.656.769.069.646.837.4 Credit
-1,790.7-1450.1-1008.3-938.2-869.4-926.7-752.3-413.4-670.6-680.7-598.4 Debit-1,602.7-1289.4-944.7-877.9-799.9-855.4-661.5-321.0-554.3-541.4-433.4 Direct investment income
62.715.435.359.5109.078.3-34.1-23.4-46.7-92.5-127.6 Portfolio and other investment income
1,405.71443.71367.11339.61273.01399.51422.91329.71225.61140.71056.0 4. Current transfers balance1,458.41493.11442.11456.81344.41471.91453.61377.41268.71207.61120.5 Credit
-52.8-49.4-75.0-117.2-71.4-72.4-30.7-47.7-43.1-66.9-64.5 Debit153.7171.2136.6147.741.871.9189.8155.498.465.836.7 General Government
1,251.91272.51230.51191.91231.11327.61233.11174.31127.21074.91019.3 Other sectors
130
1999 2000 2001 2002 2003 2004 2005(1)
Total Revenues and Grants: 338.3 603.8 568.4 560.1 672.9 801.2 1108.0 Total Revenues 328.4 583.8 563.4 532.1 664.5 782.5 1108.0 Oil and Gas 210.6 430.1 406.2 391.2 480.2 579.1 842.2
Crude Oil Exports 134.9 259.2 276.5 266.2 316.4 360.7 502.6
Oil Domestic Revenues 75.7 134.9 129.7 125.0 163.8 218.4 339.6
Non-Oil Revenues 117.8 153.7 157.2 140.9 184.3 203.4 265.8 Tax 85.4 111.0 113.7 112.9 145.3 177.3 215.7 Direct 31.9 40.7 46.9 74.4 68.3 70.3 95.7
Indirect 53.5 70.3 66.8 38.5 77.0 107.0 120.0
Non-Tax 32.4 42.7 43.5 28.0 39.0 26.1 50.1
Grants 9.9 20.0 5.0 28.0 8.3 18.7 0.0
Total Expenditure and Net Lending 340.9 397.9 406.0 485.0 581.2 858.0 1177.7 Current Expenditure 281.4 397.9 406 485 581.2 618.5 907.9
Civil Wages and salaries 78.3 98.2 111.2 134.5 143.2 159.5 197.6
Materials and Services 32.5 34.0 40.3 45.2 51.7 14.2 27.3
Defense 61.5 76.6 91.1 129.5 148.1 135.9 193.3
Interest Obligations 43.6 35.7 34.4 34.7 38.0 54.0 70.7 Local 32.3 29.2 26.8 26.2 29.2 44.9 60.1
Foreign 11.3 6.5 7.6 8.5 8.8 9.1 10.6 Transfers and Subsidies 54.4 138.3 116.0 126.4 177.2 230.6 384.9 Subsidies 26.1 88.3 60.7 57.0 106.9 152.4 286.0
Current Transfers 28.3 50.0 55.3 69.4 70.3 78.2 98.9
Appendix (10)Central Government Finance
(YR Billion)
132
1999 2000 2001 2002 2003 2004 2005(1)
Other Current Expenditure 11.0 15.2 10.0 14.7 23.0 24.3 34.1
Capital Development Expenditure 59.5 82.6 121.1 124.5 197.1 198.9 212.0
Net Lending 0.0 0.0 0.0 0.0 0.0 40.5 57.7
Overall balance (commitment) -2.6 123.2 41.3 20.6 -105.4 -56.8 -69.7
Pending obligations -1.7 8.8 -8.9 30.4 10.4 0.0 0.0
Overall balance (Cash) -4.3 -131.7 32.4 9.7 -95.0 -56.8 -69.7
Financing 0.4 -131.7 -20.3 -16.8 80.3 40.9 41.1
Privatization 0.0 0.0 0.0 0.0 -36.9 0.0 0.0
External (Net) 24.7 10.5 3.6 9.7 15.8 17.1 34.2
Domestic (Net) -24.2 -142.2 -23.9 -26.5 101.4 23.8 6.9
Banking -46.9 -171.2 -45.9 -24.0 83.9 -20.0 -27
Central Bank -50.6 -194.4 -37.5 -44.4 46.7 -66.1 -48.7
Commercial Banks 3.7 23.2 -8.4 20.4 37.2 46.1 21.7
Nonbank 22.7 29.0 22.0 -2.5 17.5 43.8 33.9
Discrepancy 3.9 -0.3 -12.1 7.1 14.7 15.9 28.6Source: Ministries of Finance and CBY(1) Preliminary
Appendix (10) ContinuedCentral Government Finance
(YR Billion)
133
ITEM *1999 *2000 *2001 *2002 *2003 **2004 **2005
1-Final Consumption Expenditure 921968 1153526 1355167 1541304 1704465 2001097 2385311public final consumption 156273 212354 239758 283281 311493 344336 367854private final consumption 765695 941172 1115409 1258023 1392972 1656761 2017457
2-Gross Investment 278493 295011 315672 367104 505543 484312 663656Gross Fixed capital formation 265371 266529 286941 371695 486002 497562 642504Change in stock 13122 28482 28731 -4591 19541 -13250 21152
3-Balance of goods & services -27667 112389 13715 -13911 -32545 66585 -15587Exports of good & services 414527 645230 596005 695131 787195 938461 1031532 Exports of goods 385994 614336 567330 647339 719810 870158 938408 Exports of services 28533 30894 28675 47792 67385 68303 93124Imports of goods & services 442194 532841 582290 709042 819740 871876 1047119 Imports of goods 330263 401844 439189 541755 652556 696924 814483 Imports of services 111931 130997 143101 167287 167184 174952 232636
4-GDP at market prices (1+2+3) 1172794 1560926 1684554 1894497 2177463 2551994 3033380Non - Oil GDP 843762 1007385 1169028 1332878 1524047 1758333 2065381
5-Consumption of fixed capital 97648 92917 98331 109997 129959 195752 2106836-indirect Taxes (net) 59248 -28369 -305 9892 -36805 -54116 397517-GDP at factor cost (4-6) 1113546 1589295 1684859 1884605 2214268 2606110 29936298-Domestic Demand (1+2) 1200461 1448537 1670839 1908408 2210008 2485409 30489679-Domestic Saving (4-1) 250826 407400 329387 353193 472998 550897 64806910-Net Factor income from abroad -74262 -114397 -105773 -131929 -175709 -214213 -238843 Labor income from abroad 4690 11899 11341 12800 13342 13793 14735 Labor income to abroad -4446 -583 -599 -1027 -688 -457 -739 Investment income from abroad 9966 24249 30082 21047 17283 19148 16778 Investment income to abroad -84472 -149962 -146597 -164749 -205646 -246697 -26961711-GNP at market prices (4+10) 1098532 1446529 1578781 1762568 2001754 2337781 279453712-Net current transfers from abroad 221616 215000 204086 223710 240425 253400 265924
Received 226398 226082 215474 243217 253497 262075 279971Payment -4782 -11082 -11388 -19507 -13072 -8675 -14047
13-National Disposable Incom (11+12 - 5) 1222500 1568612 1684536 1876281 2112220 2395429 284977814-National Saving from NDI (13-1) 300532 415086 329369 334977 407755 394332 46446715-National Saving from GNP (11-1) 176564 293003 223614 221264 297289 336684 409226Source: Central Statistical Organization* Provisional Actual** Provisional
Appendix 11 (a)Summary of Economic Indicators, 1999 - 2004 (At current Prices,Million Y.Rials)
134
item *1999 *2000 *2001 *2002 *2003 **2004 **2005
A- industries1-Agriculture, Forestry and Fishing 193991 217672 247538 265012 296765 330440 404356
Agriculture & Foresty (with out qat) 130404 143774 163657 164973 183938 199959 247129Qat 49844 58056 64154 72746 83322 93995 111874Fishing 13743 15842 19727 27293 29505 36486 45353
2-Mining and Quarrying 331246 555402 517613 563990 656155 796794 971676Mining and Quarrying 2214 1861 2087 2371 2739 3133 3677Oil and Gas 329032 553541 515526 561619 653416 793661 967999
3-Manufacturing 67195 81428 93041 107153 123690 142196 165498Manufacturing 60979 74777 85223 97822 113302 130139 152126Oil Refining 6216 6651 7818 9331 10388 12057 13372
4-Electricity, Water and Gas 11822 10941 14559 17745 20708 24134 294595-Construction 62927 69138 74606 90950 114947 157398 1798086-Wholesale and Retail Trade, Rest. & Hotels 139820 171546 207946 246205 290631 343528 389889
Wholesale and Retail Trade 110357 133521 167382 201067 241435 289908 324167Restaurants and Hotels 20000 24601 25831 28973 31459 34158 41907Maintenance 9463 13424 14733 16165 17737 19462 23815
7-Transport, Storage & Communications 131629 175526 213293 234361 255453 287294 3249318-Financial Institutions & Real Estate 106767 132271 143277 151411 175359 190324 235213
Financial Institutions 41899 59432 59672 55761 60327 64296 80996Real Estate & Business Serv. 64868 72839 83605 95650 115032 126028 154217
9-Community Social & Personal serv. 11008 12521 16898 20167 26235 33184 42382Total Of Industries 1056405 1426445 1528771 1696994 1959943 2305292 2743212B-Producers Of Government Services 131941 156069 174389 207710 224387 250864 311983C-Household Sector ( houses's Servecies ) 424 452 482 541 584 633 784D-Producers Of Private Non -Profit serv. 334 959 1378 1487 1622 1951 2178E- Import Duties 25680 29843 33788 37194 42290 48403 40911Less: Imputed Bank Services Charge 41990 -52842 -52254 -49429 -51363 -55149 -65688G D P At Markt Prices 1172794 1560926 1684554 1894497 2177463 2551994 3033380Non -Oil GDP 843762 1007385 1169028 1332878 1524047 1758333 2065381Source: Central Statistical Organization* Provisional Actual** Provisional
Appendix 11 (b)GDP At Producers Prices By Economic Activity At Current Prices For 1999 - 2004 (Million Y.Rials)
135
Item *1999 *2000 *2001 *2002 *2003 **2004 **2005 A- Industries1-Agriculture, Forestry and Fishing 47942 49857 52979 53077 54205 55907 59430
Agriculture & Foresty (with out qat) 33073 34744 37164 36615 36609 37275 39206Qat 13471 13884 14296 14708 15310 15817 16878Fishing 1398 1229 1519 1754 2286 2815 3346
2-Mining and Quarrying 33087 41752 42012 42325 41580 39685 37940Mining and Quarrying 368 1242 1316 1408 1521 1627 1667Oil and Gas 32719 40510 40696 40917 40059 38058 36273
3-Manufacturing 15006 22791 23521 24428 25390 26325 28646Manufacturing 14518 21932 22642 23536 24485 25404 27667Oil Refining 488 859 879 892 905 921 979
4-Electricity, Water and Gas 2215 2891 3079 3278 3515 3798 41755-Construction 4548 4854 5131 5469 5879 6275 64436-Wholesale and Retail Trade, Rest. & Hotels 15775 18966 20630 22073 23640 25070 26763
Wholesale and Retail Trade 12110 14745 16517 17678 19152 20443 21950Restaurants and Hotels 2134 2121 1921 2092 2076 2138 2216Maintenance 1531 2100 2192 2303 2412 2489 2597
7-Transport, Storage & Communications 24652 27205 29818 31618 33482 36947 397238-Financial Institutions & Real Estate 15144 23762 23590 22942 23866 24726 26379
Financial Institutions 4317 11752 10776 9187 9122 8889 10075Real Estate & Business Serv. 10827 12010 12814 13755 14744 15837 16304
9-Community Social & Personal serv. 2279 2554 3031 3440 4289 5063 6011Total Of Industries 160648 194632 203791 208650 215846 223796 235510B-Producers Of Government Services 47875 48741 50616 52755 54869 57085 59517C-Household Sector ( houses's Servecies ) 311 314 316 320 322 325 330D-Producers Of Private Non -Profit serv. 245 576 788 810 841 869 899E- Import Duties 4237 4193 4170 4212 4254 4297 3479Less: Imputed Bank Services Charge 4354 -10449 -9798 -8144 -7766 -7624 -8171G D P At Markt Prices 208962 238007 249883 258603 268365 278748 291564Non -Oil GDP 176243 197497 209187 217686 228306 240690 255291Source: Central Statistical Organization* Provisional Actual** Provisional
Appendix 11( c )GDP At Producers Prices By Economic Activity At Constant Prices For 1999-2004 (Million Y. Rials) 1990 =100
136
item 1999* 2000* 2001* 2002* 2003* 2004** 2005** A- industries
1-Agriculture, Forestry and Fishing 404.64 436.6 467.2 499.3 547.5 591.1 680.4Agriculture & Foresty (with out qat) 394.29 413.8 440.4 450.6 502.4 536.4 630.3Qat 370.01 418.2 448.8 494.6 544.2 594.3 662.8Fishing 983.05 1289.0 1298.7 1556.0 1290.7 1296.1 1355.4
2-Mining and Quarrying 1001.14 1330.2 1232.1 1332.5 1578.1 2007.8 2561.1Mining and Quarrying 601.63 149.8 158.6 168.4 180.1 192.6 220.6Oil and Gas 1005.63 1366.4 1266.8 1372.6 1631.1 2085.4 2668.6
3-Manufacturing 447.79 357.3 395.6 438.6 487.2 540.2 577.7Manufacturing 420.02 340.9 376.4 415.6 462.7 512.3 549.8Oil Refining 1273.77 774.3 889.4 1046.1 1147.8 1309.1 1365.9
4-Electricity, Water and Gas 533.72 378.5 472.8 541.3 589.1 635.4 705.65-Construction 1383.62 1424.4 1454.0 1663.0 1955.2 2508.3 2790.76-Wholesale and Retail Trade, Rest. & Hotels 886.34 904.5 1008.0 1115.4 1229.4 1370.3 1456.8
Wholesale and Retail Trade 911.29 905.5 1013.4 1137.4 1260.6 1418.1 1476.8Restaurants and Hotels 937.21 1159.9 1344.7 1384.9 1515.4 1597.7 1891.1Maintenance 618.09 639.2 672.1 701.9 735.4 781.9 917.0
7-Transport, Storage & Communications 533.95 645.2 715.3 741.2 763.0 777.6 818.08-Financial Institutions & Real Estate 705.01 556.6 607.4 660.0 734.8 769.7 891.7
Financial Institutions 970.56 505.7 553.7 607.0 661.3 723.3 804.0Real Estate & Business Serv. 599.13 606.5 652.5 695.4 780.2 795.8 945.9
9-Community Social & Personal serv. 483.02 490.3 557.5 586.3 611.7 655.4 705.1Total Of Industries 657.59 732.9 750.2 813.3 908.0 1030.1 1164.8B-Producers Of Government Services 275.59 320.2 344.5 293.7 409.0 439.5 524.2C-Household Sector ( houses's Servecies ) 136.33 143.9 152.5 169.1 181.4 194.8 237.6D-Producers Of Private Non -Profit serv. 136.33 166.5 174.9 183.6 192.9 224.5 242.3E- Import Duties 606.09 711.7 810.3 883.0 994.1 1126.4 1175.9Less: Imputed Bank Services Charge 964.40 505.7 553.7 607.0 661.3 723.3 804.0G D P At Markt Prices 561.25 655.8 674.1 732.6 811.4 915.5 1040.4Non -Oil GDP 478.75 510.1 558.8 612.3 667.5 730.5 809.0Source: Central Statistical Organization* Provisional Actual** Provisional
GDP Deflator by Economic Activity1999-2004Appendix 11(d)
137
Kind of Crop 1999 2000 2001 2002 2003 2004 2005Wheat Area 86112 87334 94371 89370 86520 83801 86010
Output 139563 141884 152742 131733 103794 105273 112963Yield 1.6 1.6 1.6 1.5 1.2 1.3 1.3
Maize Area 31857 32226 34941 32415 29982 38468 38504Output 47077 47625 50373 41169 32841 31066 31108Yield 1.5 1.5 1.4 1.3 1.1 0.8 0.8
Sorghum and Millet Area 469551 462948 487281 431171 378036 528224 529723Output 464240 440300 451049 347105 253367 329811 330331Yield 1.0 1.0 0.9 0.8 0.7 0.6 0.6
Barley Area 36795 37075 41278 40112 37755 34998 34515Output 42833 42428 45977 39753 27935 21794 21189Yield 1.2 1.1 1.1 1.0 0.7 0.6 0.6
Legumes Area 51079 51450 52679 49612 49237 33891 36890Output 64219 63080 64033 60541 59482 54222 59831Yield 1.3 1.2 1.2 1.2 1.2 1.6 1.6
Tomatoes Area 15943 16601 17709 18493 19078 14909 15059Output 239857 251138 261692 267267 272696 200438 204446Yield 15.0 15.1 14.8 14.5 14.3 13.4 13.6
Onion Area 4818 5103 5498 5598 5652 11909 12284Output 67901 74606 79147 80432 82025 203474 173112Yield 14.1 14.6 14.4 14.4 14.5 17.1 14.1
Potatoes Area 16675 17000 17325 17627 17834 16870 17155Output 211121 210424 208597 210769 213324 213197 217759Yield 12.7 12.4 12.0 12.0 12.0 12.6 12.7
Appendix (12)Cultivated Area in Hectare, Output in Ton and Yield in Ton per Hectare
138
Kind of Crop 1999 2000 2001 2002 2003 2004 2005Cantaloupe Area 3408 3387 3474 3697 3773 2851 2763
Output 35906 35648 36269 37469 38129 28586 27502Yield 10.6 10.5 10.4 10.1 10.1 10.0 10.0
Water Melon Area 6180 6161 6358 6544 5691 11291 11465Output 83223 78241 85005 86064 86554 141339 144212Yield 13.5 12.7 13.4 13.2 15.2 12.5 12.6
Other Vegetables Area 15401 16701 17013 4094 18282 14534 14873Output 121812 124851 132023 39730 140621 111552 115022Yield 7.9 7.5 7.8 9.7 7.7 7.7 7.7
Clover Area 25816 26140 26822 69966 26749 20604 20701Output 234357 237427 240703 960287 241592 221454 223038Yield 9.1 9.1 9.0 13.7 9.0 10.7 10.8
Other Fodder Area 88381 90025 90814 87954 88113 101274 102102Output 1165120 1213242 1227003 1190454 1190718 1311705 1318250Yield 13.2 13.5 13.5 13.5 13.5 13.0 12.9
Cotton Area 24065 26501 27278 27887 28287 17246 17609Output 24976 27673 29021 228807 29091 19536 20573Yield 1.0 1.0 1.1 8.2 1.0 1.1 1.2
Sesame Area 30975 32008 33133 32420 32515 18050 18794Output 17771 18314 19377 18643 18729 18592 19363Yield 0.6 0.6 0.6 0.6 0.6 1.0 1.0
Tobacco Area 5209 5347 5528 5431 5515 7935 8116Output 11081 11613 12122 11767 11861 17001 17694Yield 2.1 2.2 2.2 2.2 2.2 2.1 2.2
(Continued) Appendix (12)Cultivated Area in Hectare, Output in Ton and Yield in Ton per Hectare
139
Kind of Crop 1999 2000 2001 2002 2003 2004 2005Coffee Area 32837 33443 33641 33545 33662 28354 28821
Output 11182 11363 11906 11499 11608.00 11059 11331Yield 0.3 0.3 0.4 0.3 0.3 0.4 0.4
Dates Area 22162 22755 23126 23362 23601 13739 13773Output 28517 29837 31590 32364 33312 28576 29990Yield 1.3 1.3 1.4 1.4 1.4 2.1 2.2
Bananas Area 10144 10358 10798 11061 11280 8837 9075Output 88787 90099 95860 97113 99010 85555 89905Yield 8.8 8.7 8.9 8.8 8.8 9.7 9.9
Grapes Area 22412 22621 22672 22796 22870 12016 12424Output 155722 155926 162726 164578 168824 104062 107753Yield 6.9 6.9 7.2 7.2 7.4 8.7 8.7
Oranges* Area 15461 15845 16649 17068 17206 7061 7642Output 177052 181095 182681 188000 191420 82359 97237Yield 11.5 11.4 11.0 11.0 11.1 11.7 12.7
Papaya Area 4031 4106 4536 4673 4779 1344 1340Output 66943 67979 70740 72305 73751 20735 20588Yield 16.6 16.6 15.6 15.5 15.4 15.4 15.4
Other Fruits Area 13894 15372 17466 18096 18581 37838 52315Output 109286 130018 159823 165341 169899 421121 419317Yield 7.9 8.5 9.2 9.1 9.1 11.1 8.0
Source: Central Statistical Organization * Includes mandarin
(Continued) Appendix (12)Cultivated Area in Hectare, Output in Ton and Yield in Ton per Hectare
140
Kind of Industry Unit 1998 1999 2000 2001 2002 2003* 2004*
Extraction Industries:
Stone quarrying 1000 ton 2371 2476 2480 2243 2245 2246 2269
Gravel and sand 1000 ton 776 801 607 624 642 655 668
Salt 1000 ton 144 149 95 113 99 86 88
Gypsum 1000 ton 37 40 42 44 44 46 37
Manufacturing Industries:
Foodstuffs and Drinks
Canned Fish 1000 can 6407 7162 14072 28120 31001 33881 37029
Fruit and Vegetable Juices Million liter 16 15 19 31 34 36 38
Cooking Oil 1000 ton 78 51 43 55 59 63 67
Ghee 1000 ton 56 82 60 47 48 49 50
Liquid Milk Million liter 41 48 63 64 72 81 84
Curd Milk Ton 20 22 27 32 37 42 45
Grinding of Cereals 1000 ton 304 319 338
Biscuits and Cakes 1000 ton 44 45 46 51 55 59 61
Sweetmeats and Chocolate 1000 ton 16 16 17 19 20 21 22
Mineral Water Million liter 68 92 98 133 139 146 153
Gaseous Drinks Million liter 69 80 81 94 96 98 100
Tobacco Products
Cigarettes Million can 299 288 239 301 378 455 461
Textile Industries
Quantities of Industrial OutputAppendix (13)
141
Kind of Industry Unit 1998 1999 2000 2001 2002 2003* 2004*
Assorted clothing 1000 meter 7021 6543 5563 4160 4576 4992 4998
Leather Industries
Animal Tanned Skins 1000 meter 1665 1672 2209 2218 3805 5392 5844
Rubber Slippers 1000 pair 6160 6177 778 782 1605 2429 2639
Plastic Shoes 1000 pair 4525 4586 6336 6342 6802 7263 7319
Leather Shoes 1000 pair 301 313 229 231 194 157 159
Wooden Products (Except Furniture)
Wooden Windows & Doors 1000 pieces 595 612 302 381 488 596 598
Paper & Paper By-products
Tissue Paper & Napkins Ton 1390 1436 864 1281 1544 1807 1817
School Exercise Books Ton 7011 7174 4672 4816 4842 4859 4911
Printing & Publication
Printed Books Million Book 25 26 33 73 64 55 53
Petroleum By-products
Benzene 1000 metric ton 856 992 907 1001 1013 1058 1138
Diesel 1000 metric ton 990 1298 1346 1679 1852 2139 2260
Fuel Oil 1000 metric ton 1423 1339 738 1400 1017 1497 1340
Kerosene 1000 metric ton 514 418 408 469 438 495 399
Liquefied Gas 1000 metric ton 71 38 58 78 85 87 721
Asphalt 1000 metric ton 34 48 52 69 68 105 106
(Continued) Appendix (13)Quantities of Industrial Output
142
Kind of Industry Unit 1998 1999 2000 2001 2002 2003* 2004*
Naphtha 1000 ton 426 411 476 620 377 431 135
Chemical Products & By-products
Wall Paint and Paste 1000 liter 7513 7573 7205 7479 11521 15564 15664
Powder Soap Ton 61 51 58 43 56 70 74
Plastic Products
Hoses & Pipes Ton 3653 3683 3947 5304 5312 5366 5371
Sponge Ton 2145 3679 3682 4264 4331 4376 4422
Plastic Bags Ton 10181 10211 10321 10733 10886 10891 10993
Household Utensils Ton 4081 4111 4167 4171 4283 4331 4366
Non-Metallic Products (Construction)
Cement 1000 ton 1195 1454 1406 1449 1561 1541 1572
Gypsum 1000 ton 9 9 10 11
Cement Tiles Million pieces 76 78 79 81 83 84 86
Cement Blocks and Bricks Million pieces 94 97 98 102 104 109 111
Marble 1000 sq. meter 93 97 99 101 99 98 97
Cut Stones Million pieces 34 36 38 39 49 50 51
Metal Fabric Products
Windows & Doors 1000 pieces 744 747 752 908 1131 1420 1438
Metallic Household Utensils Ton 1077 1098 1102 1127 879 896 910Source: Central Statistical Organization * Preliminary Figures
(Continued) Appendix (13)Quantities of Industrial Output
143
Items 1998 1999 2000 2001 2002 2003 2004 2005
General Index Number 92.03 100 104.59 117.05 131.37 145.60 163.81 183.18
a- Food Index Number 90.6 100 105.27 121.78 127.62 148.87 177.20 212.18
b- Housing Index Number 90.75 100 103.17 108.62 120.46 133.51 136.48 144.12
c- Clothing Index Number 115.96 100 104.35 108.4 116.93 120.82 124.00 127.17
d- Other Index Numbers 94.5 100 103.3 113.29 111.26 130.99 172.75 148.24Source: Central Statistical Organization
Appendix (14) CONSUMER PRICE INDEX
144
EndEndEndEndEndEndEndEndPeriodAveragePeriodAveragePeriodAveragePeriodAveragePeriodAveragePeriodAveragePeriodAveragePeriodAverage
186.61186.44184.35184.36181.74181.47173.16173.27166.23166.06161.09160.48143.85142.50130.41130.24January187.60187.10184.49184.40181.88181.70173.36173.36166.05166.26161.06160.78146.54145.11132.34132.15February188.61187.99184.56184.50183.63183.05173.97173.81166.58166.32161.15161.03148.15148.67132.12132.65March191.14190.12184.55184.52183.64183.40174.47174.31167.30166.87161.30161.22155.19152.12133.11132.54April192.42191.75184.59184.56183.89183.79175.09174.81168.09167.63161.65161.38159.44157.75133.82133.58May190.50193.06184.73184.64183.98183.89175.55175.29168.83168.59156.55158.27160.45159.63136.19135.00June192.37191.89184.79184.75184.00183.98176.38176.21169.47169.38160.96158.11160.64160.57137.00136.49July192.66192.49184.87184.81183.93183.93176.66176.53169.47169.47162.84161.41160.56160.80136.66136.56August193.60193.02184.99184.91183.95183.93177.09176.92171.78170.03163.88163.55160.90160.95138.17137.55September194.27194.00185.1185.03183.85183.95177.2177.17170.56171.88164.83164.59161.05161.05141.34140.94October194.66194.41185.39185.25184.22184.04177.22177.14171.28170.21164.40164.71161.02160.14142.04141.85November195.08194.76185.87185.58184.31184.28179.01178.17173.27171.86165.59165.17159.10159.65141.65141.02December
191.42184.78183.45175.62168.69161.73155.75135.88Yearly average
200019991998
Appendix 15 (a)Market Exchange Rate
(Rials per USDollar)20052004200320022001
145
20052004200320022001200019991998Currency / PeriodUS Dollar
194.9400185.7200184.1600178.7600173.1000165.3400156.2291135.6967 Buying195.2100185.8500184.4300178.9900173.4400165.7200156.5558136.0290 Selling
Sterling Pound335.8400358.7000326.8400286.8700251.2500243.5500252.1650224.1755 Buying336.3100359.1400327.3200287.2300251.7500244.1100252.6916224.7222 Selling
E.C.U.231.2900253.4200230.2100186.6300153.2800152.8500166.7333 Buying231.6100253.7400230.5500186.8700153.5800153.0000166.9455 Selling
D. Mark78.370078.050084.617577.2670 Buying78.520078.230084.794277.4529 Selling
Swiss Franc148.3600164.2200147.5100128.4100103.4500100.4500103.370093.7956 Buying148.5700164.4200147.7300128.5800103.6600100.7700103.586694.0538 Selling
French Franc23.370023.270025.230823.1354 Buying23.410023.320025.283323.1895 Selling
Saudi Arabian Rial51.980049.520049.110047.660046.160044.080041.657536.1768 Buying52.050049.580049.180047.730046.250044.190041.745836.2652 Selling
Dutch Guilder69.550069.270075.100868.5461 Buying69.690069.430075.260068.7134 Selling
Kuwaiti Dinar667.1500630.0100624.7400596.5600563.5700541.3800512.8733445.8687 Buying668.0700630.7900625.6500597.2300564.6800542.6000513.9450446.9561 Selling
Belgian Franc3.80003.78004.10164.0852 Buying3.81003.79004.11604.0957 Selling
Appendix 15 (b)Exchange Rate of Major Foreign Currencies
Rails per Unit
146
20052004200320022001200019991998Currency / Period
Appendix 15 (b)Exchange Rate of Major Foreign Currencies
Rails per Unit
100 Japanese Yen165.4487179.9438172.0719149.0846132.0466144.5774138.8804104.3900 Buying165.6779180.1666172.3242149.2765132.3060144.8396139.1673104.6500 Selling
Swedish Krona24.560028.230025.330020.340016.490017.260018.855017.0780 Buying24.590028.260025.370020.360016.520017.300018.892517.1199 Selling
100 Italian Lires7.91628.04748.54747.0820 Buying7.93178.06208.56537.0840 Selling
Jordanian Dinar275.1600261.9500259.7500251.9500244.2200232.8700219.6475190.8076 Buying275.5500262.2700260.1300252.2800244.7000233.4100220.1066191.2730 Selling
UAE Dirhem53.070050.570050.140048.670047.130045.020042.535836.9379 Buying53.150050.630050.210048.730047.220045.120042.623337.0285 Selling
Bahraini Dinar517.0400492.6300488.5000474.1600459.1600438.5600414.4183359.9402 Buying517.7600493.2400489.2200474.7700460.0700439.5600415.2841360.8164 Selling
Qatari Rial53.540051.020050.590049.100047.560045.430042.920037.2760 Buying53.620051.090050.670049.160047.650045.540043.008337.3689 Selling
Omani Rial506.3600482.3900478.3600464.2900449.6600429.4700405.7942352.6629 Buying507.0700482.9900479.0600464.8800450.5400430.4500406.6416353.4935 Selling
Egyptian Pound33.900030.170029.970038.710037.790043.630045.706739.9350 Buying33.950030.210030.010038.760037.870043.730045.802540.0472 Selling
147